Swedish govt won’t intervene to rescue struggling Northvolt: PM

Sweden has no plans to rescue financially-strained electric car battery maker Northvolt, hit by slumping EV sales in Europe and stiff Chinese competition, Prime Minister Ulf Kristersson said Monday.

Northvolt announced on September 9 that it planned to slash its workforce and scale back its operations in order to improve its "financial stability".

"There are no plans for the Swedish state to become a part owner of Northvolt or anything like that," Kristersson said at a press conference.

However, he said, "we are committed to making Sweden a good place ... for the new technology that is needed for the green transition" and "for that kind of industry".

"Right now the ball is in the court of Northvolt's owners," he said.

German auto giant Volkswagen is Northvolt's main shareholder with 21 percent.

Since its creation, the Swedish company has secured $15 billion of credit and capital.

Europe lags far behind China in the production of batteries for electric vehicles.

Northvolt has been seen as a cornerstone of European attempts to catch up with China and the United States in the production of battery cells, a crucial component of lower-emission cars.

Europe accounts for just three percent of global battery cell production, but has set its sights on 25 percent of the market by the end of the decade.

Northvolt said it was putting a facility that makes cathode active material at its main Swedish site in Skelleftea "into care and maintenance until further notice".

It did not say how many jobs it would cut. It had 5,860 employees at the end of 2023.

The company also recently announced it was scrapping plans to build a facility to produce battery materials in Borlange, Sweden.

According to Swedish media, the company is working on a new share emission in order to raise 7.5 billion kronor ($737 million).