“Northvolt’s financial collapse deals a blow to Europe’s plan to build its own battery industry for electric cars, sparking debate over whether more should be done to attract investment as startups try to catch up with Chinese rivals.”, — write: www.epravda.com.ua
Northvolt’s financial collapse deals a blow to Europe’s plan to build its own battery industry for electric cars, sparking debate over whether more should be done to attract investment as startups try to catch up with Chinese rivals.
About this informs Reuters.
Europe’s greatest hope for batteries for electric vehicles submitted filed for Chapter 11 bankruptcy protection after talks with investors and creditors, including Volkswagen and Goldman Sachs, about financing failed.
This left Europe’s ambitions to create its own battery industry a pipe dream.
The Swedish company has raised more than $10 billion in equity, debt and government funding since its founding in 2016. Volkswagen and Goldman Sachs each own about one-fifth of its shares.
On Friday, Northvolt said it needed $1.0 billion to $1.2 billion in new funds as part of a restructuring process it hopes will be completed by the end of March.
The company has scaled back its business and cut jobs in recent months as it tries to shore up its finances. But the company is trying to produce sufficient volumes of high-quality batteries, and in June lost a €2 billion ($2.1 billion) contract from BMW.
Demand for electric vehicles is growing more slowly than many in the industry had predicted, and China has emerged as the leader in electric vehicle production, controlling 85% of global battery production, according to the International Energy Agency.
At least eight companies have postponed or abandoned electric vehicle battery projects in Europe this year, including China’s Svolt and the ACC joint venture led by Stellantis and Mercedes-Benz.