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🖐 The Swedish electric vehicle supplier, and once a European poster-child of green energy transition, Northvolt filed for bankruptcy on Tuesday last week, after a desperate bid to secure rescue funding fell short, leaving the struggling battery maker with just one week’s cash of $30m and $5.84bn in debt. This is a major blow to the European investor and greentech community. Northvolt, with €15bn in subsidies, loans, and capital, had been Europe’s best-funded tech startup and a beacon of hope to challenge Chinese and South Korean dominance in EV supply chains. As you can imagine, the collapse is very bad news for Northvolt investors. Scottish Mortgage Investment Trust PLC UK is said to be £315m out of pocket after the Northvolt collapse. Other notable losers include, BMW Group (who first pulled the plug), Volkswagen Group, Goldman Sachs, who buried $900m in Northvolt investment, and state-owned pension funds that had invested a total of about $520m. - In October, the Swedish government refused a bailout. Some blame the collapse on sluggish demand for electric vehicles (EVs) in Europe, but the truth is that Northvolt had a €50bn backlog of orders earlier this year. Let’s face harsh reality. Europe did not see the EV threat coming because the incumbent car industry had captivated Berlin and Brussels. The Washington think-tank Centre for International and Strategic Studies estimates that China has spent $230bn in state support nurturing its EV ecosystem. Its production capacity reached 2,600 GWh this year (world demand for batteries last year was 950 GWh (gigawatt hours), and will more than double again to almost 6,000 GWh next year under current plans. Meanwhile, Brussels has neither the money nor the legal mandate to replicate this - the companies producing batteries in Europe are mostly Chinese or Korean. The recent Draghi report says the EU needs joint debt issuance and extra investment of €800bn a year to restore wider competitiveness. How realistic is it? More in the Female Foundry newsletter 👉 https://lnkd.in/eVWu6aT4 #femalefoundry #femalefounders #venturecapital

Electric Car Battery Maker Northvolt Faces Major Valuation Hit Amid Global EV Market Downturn Once a rising star in Europe’s green technology sector, Swedish battery giant Northvolt is now facing a major crisis. Valued at over $12bn last year, Northvolt’s value has plummeted by 85%, as investors slash their stakes in the company. Scottish Mortgage Investment Trust, one of its biggest backers, has reduced its holdings from £380m to just £57m, reflecting the harsh reality of the electric vehicle (EV) market downturn. Northvolt has been a key player in Europe’s efforts to build a sustainable EV supply chain, producing low-emission batteries at its massive factory near the Arctic Circle. Powered by hydroelectricity and using recycled materials, Northvolt’s batteries boast 90% lower carbon emissions compared to rivals. Yet, despite this green advantage, Northvolt has struggled to meet its targets, with production delays and the cancellation of a multibillion-euro contract from BMW Group casting doubt on its growth plans. The broader EV market in Europe is also struggling, with demand falling sharply—44% in August alone—driven by high prices, pushing consumers back to petrol vehicles. Meanwhile, an influx of cheaper Chinese EV brands, powered by their own domestic batteries, has intensified competition for Europe’s traditional carmakers. Volkswagen, both a customer and investor in Northvolt, has warned that it expects to sell 500,000 fewer vehicles annually in Europe due to these headwinds. To navigate through this crisis, Northvolt is currently raising around $200m in emergency funding, with discussions underway with stakeholders including Scania Group, a Volkswagen subsidiary. However, with layoffs of 1,600 staff and the cancellation of ambitious expansion plans, Northvolt’s ability to bounce back is uncertain. The challenges at Northvolt underscore the broader struggles facing Europe’s EV industry, as it battles high production costs, price-sensitive consumers, and the rise of fierce competition from Asia. As Northvolt continues its fundraising efforts, it remains to be seen whether the company can regain its position as a leader in the green tech sector or fall victim to the rapidly shifting dynamics of the global EV market. #ElectricVehicles #BatteryTechnology #Sustainability #Northvolt #GreenTech #EVMarket #RenewableEnergy #Investment

Northvolt, the Swedish EV battery manufacturer, recently filed for Chapter 11 bankruptcy in the U.S., citing over-expansion and fierce competition from Chinese battery makers. Despite raising over $13.8 billion in equity and public funding since its founding in 2016, the company was burdened with $5.8 billion in debt and only $30 million in cash at the time of filing. Key setbacks included the loss of a $2.1 billion contract with BMW and slower-than-expected demand for electric vehicles in Europe. Northvolt hopes to restructure and secure additional funding by early 2025 to continue operations. The bankruptcy has significant implications for Europe's ambitions to reduce dependency on Chinese battery manufacturers, who dominate 85% of global production. European governments are now emphasizing strategic initiatives to boost local production and diversify raw material sources. Volkswagen, a major investor in Northvolt, has already written down much of its stake, further complicating the outlook for European EV manufacturing. https://lnkd.in/d6DUz3uv

𝗡𝗼𝗿𝘁𝗵𝘃𝗼𝗹𝘁 𝗳𝗶𝗹𝗲𝘀 𝗳𝗼𝗿 𝗯𝗮𝗻𝗸𝗿𝘂𝗽𝘁𝗰𝘆 𝗶𝗻 𝗺𝗮𝗷𝗼𝗿 𝗯𝗹𝗼𝘄 𝘁𝗼 𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗘𝗩 𝘀𝗲𝗰𝘁𝗼𝗿 This is a massive blow to Europe's EV manufacturing goals, as Northvolt was viewed as the best homegrown chance for reducing reliance on China. #EV #NetZero #EU #GreenDeal #Agenda2030 #Economy #Crisis #Unemployment #Northvolt #Europe #Industry #EVs #Sweden https://lnkd.in/eguUccU3

https://lnkd.in/gCcrN-Y5 Northvolt's Challenges in Scaling a "Green" Battery Manufacturing Ecosystem in Europe: - know-how, IPs, and strict regulatory compliance - supply-chain, cost of labor, and operation - fierce competition from BYD, CATL, LG Energy, and Panasonic who have started since 90's except CATL were founded 2011 - macroeconomic (low demand) and policy uncertainties

🗞 Electronic News! 🗞 Swedish battery startup Northvolt has filed for Chapter 11 bankruptcy protection in the US as its finances collapse. Northvolt AB and certain of its subsidiaries voluntarily filed for Chapter 11 reorganization in a court in Austin, Texas yesterday. A hearing will be held on 17th December. This move will unlock $245m funding that will see backers take over parts of the business, which had raised $13bn to be a sovereign source of battery cells for electric vehicle makers such as VW and BMW and stationary energy storage systems for renewable energy projects. #electricalengineering #electronics #embedded #embeddedsystems #electrical #computerchips Follow us on LinkedIn to get daily news: HardwareBee - Electronic News and Vendor Directory

That sure is a big splash! Good to see Northvolt stepping up and scaling production - diversifying producers on battery technology and setting up more localised shops makes us all more resilient in the long run. What do you think? #innovation #energy #makeinnovationhappen

Narratives crush rising tides. Stick to facts, you’ll do better. “Despite raising $13.8 billion in funding, the company generated only $128 million in revenue in 2023” “Reasons For Failure: Weak Market Demand: Despite the global EV push, demand for electric vehicles in Europe has softened, leaving automakers with excess inventory and scaled-back ambitions. Some automakers, delayed or downsized electrification projects, directly impacting Northvolt’s revenue pipeline. Operational Challenges: Scaling production is notoriously difficult, particularly in an industry as capital-intensive as battery manufacturing. Northvolt struggled to meet delivery timelines, losing a $2B contract with BMW in June after delays earlier in the year. Leadership Missteps: Northvolt tried to scale too quickly, taking on ambitious projects (like their green gigafactory) without ensuring its core operations were running smoothly. Former CEO Peter Carlsson admitted, “I should have probably pulled the brake earlier on some of the expansion paths in order to make sure that the core engine was moving according to plan.”. Financial Mismanagement: Northvolt's financial health deteriorated sharply, with net losses escalating from $285 million in 2022 to approximately $1.2 billion in 2023. #getoutside

Obviously, this was already some big news I wanted to share but didn't want to distract from our COP29 reporting we did over the last week at NovAzure. Hence the posting just now... Northvolt is the last recent story of how the EU has been struggling on getting a key anchor stone onto the map for own battery production. Obviously there is a strong connecting point with the EV OEM storyline across Europe having missed a trick of offering affordable EVs to a very price sensitive market. Without the massive off-take outlooks from BMW (and with VW struggling themselves... wanting to close down plants in Germany) in the EV sector it's no wonder that earmarked key suppliers such as Northvolt feel the hit. Again, this is quite cyclical.... hopefully investors & consumers will go much more "bullish" into the market for 2025. Or is it too late...? Any thoughts?

As I pointed out, BYD and Contemporary Amperex Technology Co., Limited produce more efficient batteries with 190Wh/kg energy density at $55/kWh, while Northvolt has 160Wh/kg at $100/kWh. Even with substantial subsidies, Northvolt batteries are twice the cost (density/cost). #electricvehicles #batteries #supplychain #cleantech