The hopes of Sweden’s green industry are affected by Northvolt’s problems

Many researchers and journalists who have followed Northvolt’s downfall share the view that it is at least partly due to declining global demand for electric vehicles (EVs).

In September Volvo abandoned its target only producing EVs until 2030, “customers and markets move at different speeds.” Meanwhile, China, the leader in the electric battery market, was able to lower Northvolt’s prices.

Missing production targets (a major factor in BMW’s exit from the €2bn deal in June), too-rapid expansion and the company’s management have also been widely cited as factors fueling the crisis.

“Creating batteries is a very complex process. It takes a lot of capital, it takes time, and obviously they didn’t have the right people running the company,” claims Andreas Cervenka, a business writer and economic commentator for a Swedish daily newspaper. Aftonbladet.

Madeleine Eriksson, a geographer who studies the impact of so-called “green industries” at Umeå University, says Northvolt introduced a “save the world” mentality that impressed investors, the media and local politicians.

But this “now-or-never” approach, he claims, masks the fact that he’s a risk-taking startup that “never finishes raising investment.”

Northvolt did not respond to multiple BBC requests for comment on its collapse or future plans.

The firm hired German Marcus Dangelmaier from global electronics company TE Connectivity to run Northvolt’s operations in Skellefea from January as it looks to attract fresh investment.

Northvolt co-founder and CEO Peter Carlsson — a former Tesla executive — resigned in November.