Swedish battery-maker Northvolt has introduced the outcomes of a strategic evaluation into its enterprise.
The preliminary end result is a choice to “streamline” its operations by resolving manufacturing issues at its Ett gigafactory in northern Sweden. Nevertheless plans to construct gigafactories price €12.6bn in Germany, Sweden and Canada are nonetheless going forward – ultimately.
Its main plant, in Skellefteå close to the Arctic Circle, has an annual capability of 16GWh however is producing fewer than 1GWh at current.
Plans to construct “Northvolt Fem”, a cathode supplies manufacturing unit within the city of Borlänge, have been terminated and the location has been bought. The corporate will as a substitute purchase them from Chinese language and Korean suppliers.
The corporate will search for companions and buyers in “Northvolt Dwa”, a battery meeting plant that was to be in-built Gdansk.
There can be numerous job losses amongst its 7,000 employees.
Peter Carlsson, chief government and co-founder, commented in a press assertion: “We’re having to take some powerful actions for the aim of securing the foundations of Northvolt’s operations to enhance our monetary stability and strengthen our operational efficiency.”
Northvolt has raised €15bn in debt and fairness – probably the most of any start-up in Europe. Its backers embrace Volkswagen, Goldman Sachs, BMW, Siemens and BlackRock.
It has suffered from a saturation of the EV battery market resulting from rising provide and reducing demand, significantly from European carmakers. Volkswagen just lately warned it may shut factories in Germany, and Volvo has deserted its 2030 purpose of promoting solely EVs.
BMW just lately cancelled a $2bn contract with Northvolt, as a substitute giving it to Korea’s Samsung SDI. To make issues worse, Korean and Chinese language teams are constructing a lot of battery factories in Europe, primarily in Hungary.
As beforehand reported (see additional studying), Northvolt will delay plans to construct three extra gigafactories: Novo, close to Gothenburg, Northvolt Six close to Montreal and Northvolt Drei close to Berlin. Collectively, these crops have an funding worth of €12.6bn.
It stated the timelines of the initiatives could be confirmed within the autumn, including that it “remained dedicated” to them.
“As tough as this can be, specializing in what’s our core enterprise paves the best way for us to construct a robust long-term basis for development that contributes to Western ambitions to determine a homegrown battery trade,” Carlsson stated.
Northvolt, which launched its strategic evaluation in July, can be debating what to do with what its plans to develop sodium-ion batteries, which use no lithium, cobalt or nickel.
Though Northvolt is in search of consumers or companions for its vitality storage enterprise, executives stated it may proceed to develop sodium-ion know-how with different corporations ultimately making the product.
Regardless of Northvolt’s current difficulties, Carlsson confused his confidence that they’d be overcome.
He stated: “Whereas circumstances presently are difficult, there stays no query that the worldwide transition in direction of electrification – and the long-term outlook for cell producers, together with Northvolt – is powerful.”
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