25 July 2024

Northvolt’s Losses Triple – Heide Plant in Jeopardy?

Customers are complaining about delivery delays, and BMW has even canceled a major order: things are not going well for the Swedish battery manufacturer. China is also part of the problem.

Northvolt’s troubles continue. On Tuesday, the Swedish battery manufacturer reported that last year’s loss had tripled to around one billion dollars. This is due to the company’s difficulties in ramping up the production of battery cells for electric cars at its factory in Sweden.

CEO Peter Carlsson stated that the company has faced “numerous challenges and setbacks” in this endeavor. However, he emphasized that the overall development is still moving towards more stable production. He also mentioned plans to expand the factory in Sweden and future new plants.

Northvolt aims to start producing battery cells for electric cars in Schleswig-Holstein from 2026. At the groundbreaking ceremony for the “Gigafactory” near Heide in March, Chancellor Olaf Scholz (SPD) and Economics and Climate Minister Robert Habeck (Greens) were present.

However, the company is sending mixed signals. Speaking to the Swedish business newspaper “Dagens Industri,” Carlsson said: “We have been a bit too aggressive in our expansion plans, and we are reviewing that now.” The company now needs to “better focus on what we can realistically achieve.”