Batteries News’ Post

Northvolt’s shock decision this week to shrink its operations and cut jobs has sparked fears that Europe's best shot at a home-grown electric vehicle battery champion may stall, sector experts and people familiar with the situation told Reuters. Struggling with order delays and the loss of a $2 billion BMW Group contract in June, CEO and ex-Tesla executive Peter Carlsson said on Monday the company he co-founded in 2016 would stop producing cathode active material (CAM) - a crucial battery component - scrap plans for a Swedish facility and seek investors for a plant in Poland. The Swedish company said it will focus on its core business of making battery cells, the units that store chemical energy. The decision effectively means Northvolt, Europe's most developed battery player, has stepped back from its original mission to be an all-in-one shop offering everything from material production and battery making to end-of-life recycling. Coming just as former European Central Bank head Mario Draghi warned of green tech competition from China in a long awaited report, the announcement raises questions about Northvolt's ability to be a major force in Europe's electric mobility push. "Northvolt was the doyen of European battery industry and if they can't produce (batteries), it really shows that, industrially, Europe is going to be incredibly dependent on Asia going forward," said Andy Leyland, co-founder of supply chain specialist SC Insights. Benchmark Mineral Intelligence analyst Evan Hartley said the scrapping of cathode active material production will put Europe "at a further disadvantage when it comes to local production". Northvolt has had problems in manufacturing high-quality batteries in high volumes to meet its ambitious targets while fighting Chinese rivals such as CATL (300750.SZ), opens new tab and BYD (002594.SZ), opens new tab, analysts told Reuters. Northvolt's sprawling business has been a complicating factor, they added. In its strategic review, the company did not address the issue of delays but said it would focus on being a battery cells leader. Northvolt will now need to buy its cathode active materials from Chinese or South Korean suppliers, said a person familiar with the matter.

Reset? Temporary Retraction? Or a Warning Shot Across the EU’s Competitive Bow? What’s going on at Northvolt—are they just catching their breath, or is this more of a strategic retreat? Their recent pullback and layoffs might look like a mere reset on the surface, but could it be a sign of something deeper? Is it a tactical move, a sign of market recalibration, or a glaring red flag pointing to Europe's challenges in staying competitive in the global battery arms race? The bigger question: Is Northvolt's move a temporary retraction or a reflection of broader issues within the EU’s industrial strategy? Are they simply trimming the fat, or does this signal a more systemic issue with the EU’s ability to keep pace with global giants in the race for clean energy dominance? If the answer is the latter, perhaps it’s time for Europe to ask itself some tough questions: Is it ready to play in the big leagues, or are these growing pains indicative of a much larger existential crisis about its competitive future?

Good news at last. But progress still slow. Morrow Batteries, founded in 2014, has finally opened its first 1 GWh factory after ten years and $206 million in investment. The factory will produce LFP batteries—nothing revolutionary, but solid progress for an EU battery industry that's been starved for good news. Unlike the fast-paced, high-risk approach of Northvolt, Morrow is taking its time—slow, deliberate steps. This first 1 GWh plant seems to be more about testing production processes and ironing out any inconsistencies in speed and quality rather than rushing to market. Morrow aims to scale up to 43 GWh by 2028. But given the company’s glacial pace, it wouldn’t be surprising if this milestone gets pushed to 2038. Here’s hoping they prove me wrong. https://lnkd.in/daN3MQ6G #Batteries #EnergyStorage #Manufacturing #ScaleUp #LFP #CleanTech #EUInnovation #MorrowBatteries #Northvolt

Reutersilta laaja artikkeli Northvoltin tilanteesta: "Northvolt's shock decision this week to shrink its operations and cut jobs has sparked fears that Europe's best shot at a home-grown electric vehicle battery champion may stall, sector experts and people familiar with the situation told Reuters. Struggling with order delays and the loss of a $2 billion BMW contract in June, CEO and ex-Tesla executive Peter Carlsson said on Monday the company he co-founded in 2016 would stop producing cathode active material (CAM) - a crucial battery component - scrap plans for a Swedish facility and seek investors for a plant in Poland. The Swedish company said it will focus on its core business of making battery cells, the units that store chemical energy. The decision effectively means Northvolt, Europe's most developed battery player, has stepped back from its original mission to be an all-in-one shop offering everything from material production and battery making to end-of-life recycling. ...Despite its struggles, Northvolt is still far ahead of such rivals as Norway's Morrow and Freyr, and Stellantis and Mercedes' joint venture Automotive Cells Company (ACC)." #akkuteollisuus #northvolt https://lnkd.in/d_haUvWh

Northvolt to focus on ramping up the first 16 GWh production capacity at Northvolt Ett, cuts nearly 1,600 jobs #EV #electricvehicles #electricmobility #zeroemissions #climateaction #investinourplanet #sustainability #greenmobility #cleanmobility #futuremobility #sustainable #electric #battery #sweden #northvolt https://lnkd.in/dDm_5gEn

2024 has not been kind to #Northvolt, the #Swedish battery-maker co-founded by Peter Carlsson, who previously worked on battery technology at #Tesla. The problems have led #BMW to rethink its $2 billion order for Northvolt batteries after the company was unable to meet its production targets. A few weeks ago, Northvolt announced the initial steps that are part of a strategic review. These measures reflect a challenging #macroeconomic environment and a subsequent reassessment of Northvolt’s near-term priorities, leading to a rescope of operations and appropriate resizing of our workforce, the announcement said. The objective of the strategic review is to focus resources on becoming a leader in sustainable large-scale cell manufacturing. That will involve ramping up the first phase of the Northvolt Ett #gigafactory in #Sweden, while continuing to leverage the company’s R&D facility, Northvolt Labs, in Västerås, Sweden. That is considered a key requirement for Northvolt to maintain its position as a leading cell manufacturer in the Western world. Peter Carlsson said, “With the strategic review now underway, we are having to take some tough actions for the purpose of securing the foundations of Northvolt’s operations to improve our financial stability and strengthen our operational performance. While conditions at this time are challenging, there remains no question that the global transition towards electrification — and the long-term outlook for cell manufacturers, including Northvolt — is strong.” Tom Johnstone, head of the Northvolt Board of Directors, commented: “Our success is in part dependent on the overall market ramp-up of electric vehicles and support from stakeholders around us. Equally, we must build on lessons learnt through our journey to date.” Now that review process is complete and the company has announced its plan for moving forward. It is harsh news for many employees. It includes a revised scope of operations in Sweden to ensure that resources are focused on accelerating production in large-scale cell manufacturing at Northvolt Ett. These measures are expected to result in the redundancy of approximately 1,600 Northvolt employees, split across #Skellefteå (1,000 positions), #Västerås (400 positions), and #Stockholm (200 positions). All redundancies are subject to ongoing union negotiations. Redundancy is how companies say “You’re fired!” but in a less mean way. In adjusting its near-term ambitions and focusing on the ramp-up of the first 16 GWh phase of Northvolt Ett, Northvolt is positioning itself to prioritise commitments to its current automotive customers. This priority is further being supported by a recently introduced acceleration program geared to further increase levels of production. The program is already demonstrating results and contributed to Northvolt Ett cell production increasing three-fold since the beginning of this year.

⚡Northvolt selling off redundant battery materials ⚡ Northvolt, once seen as Europe's top hope for homegrown EV battery production is facing turbulent times. The company has cut 20% of its workforce and is selling off excess raw materials like nickel sulphate and lithium hydroxide, as part of efforts to raise cash and refocus its business on large-scale battery cell manufacturing. Despite ambitious goals and over $10 billion in funding, Northvolt has struggled with quality issues, lower-than-expected demand, and competition from China. As the EV battery market faces oversupply challenges, companies must adapt quickly to survive. Do you think European battery companies can compete with China and the US? #BatteryTech #Sustainability #Northvolt

𝐍𝐨𝐫𝐭𝐡𝐯𝐨𝐥𝐭'𝐬 𝐐𝐮𝐞́𝐛𝐞𝐜 𝐏𝐥𝐚𝐧𝐭 𝐅𝐚𝐜𝐞𝐬 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐃𝐞𝐥𝐚𝐲𝐬 𝐀𝐦𝐢𝐝 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 Northvolt, the Swedish battery manufacturer, has more on its plate than just dealing with protestors as it considers scaling back its international expansion plans. What Happened: Despite ongoing construction of the $7 billion EV battery plant in Québec, Northvolt has announced potential delays following a comprehensive review. The federal and provincial governments had pledged a combined $2.7 billion investment in the plant, aiming for it to produce batteries for up to a million electric vehicles annually. Why It's Happening: Northvolt appears to be struggling with its rapid expansion. Its flagship factory in Sweden has not met expected production levels, resulting in the loss of a $2 billion contract with BMW due to delivery delays. Additionally, the company is under a workplace safety investigation and reported a $1.03 billion operating loss in 2023, a significant increase from the previous year. Why It Matters: Northvolt's setbacks are not isolated. Other companies in the EV battery sector, such as Ford and Umicore, are also re-evaluating their positions. This trend raises concerns for Canada, which has heavily invested in the industry over the past few years. #Northvolt #EVBattery #Québec #ElectricVehicles #Investment #Manufacturing #TechNews #Canada #SustainableEnergy #BusinessUpdate #IndustryTrends #CleanTech

With BYD and Contemporary Amperex Technology Co., Limited reaching 190Wh/kg energy density at $55/kWh, what chance does Northvolt have with 160Wh/kg at $100/kWh with substantial subsidies? You can't blame BMW Group for trying to remain competitive. #electricvehicles #batteries #supplychain #cleantech

As noted earlier, and sadly, this is not a surprise. You can't build a new industry from the top down without overcoming major obstacles. Industry is built from the bottom up. Northolt's story is akin to trying to land humans on the moon before you actually build a rocket that can orbit the earth. I don't know if the West will ever learn that you can't jump into an industry and expect to be successful right away without first understanding and building the knowledge and supply of that industry from the ground up. Northvolt needs Chinese/Asian equipment and raw materials. Build mines, then build intermediate processing to make PCAM. Then make CAM and finally get into cell manufacturing. Cell chemistry R&D should run in parallel. That is how you build an EV Battery supply chain, not just by putting up a massive factory and announcing that you are now in business....