The boss of bankrupt Swedish battery manufacturer Northvolt said European policymakers must give more support to the local battery industry toReduce dependence on Asian suppliers. Tom Johnstone, interim chairman of Northvolt, said Europe needs to be determined and patient, "recognizing that it will require huge investments and some hardships." He also added:"There is a price to pay for developing the battery industry, but not doing so may pay a greater price."
Northvolt was once Europe's best hope for battery manufacturing, the company filed for bankruptcy in Sweden on Wednesday, ending nine years of growth. from investors and governments$15 billion raised, more than any other European private start-up,But it still cannot compete with Chinese companies that dominate the battery industry.
Investors in the Swedish company include Volkswagen, Goldman Sachs and BlackRock. Its factories near the Arctic Circle already produceMore than 1 million batteries, but the company is still suffering huge losses as it has not yet fully expanded its production scale.
other European battery manufacturers,For example, France's Vercor, ACC, or Volkswagen's PowerCo are still several years behind Northvolt.
Some shareholders of Northvolt have criticized that neither the Swedish government nor the European Union has provided the company with much financial support, while Chinese battery manufacturers have received large government subsidies for years.
Julia Poliskanova, senior director of the environmental campaign group Transport and Environment, said: "Northvolt is the battery company closest to commercialization in Europe. We don't know whether other companies can succeed.If this happens in China, the Chinese government will definitely choose to support it."
CATL, the world's largest battery manufacturer, has plans to build factories in Germany, Hungary and Spain. One automotive industry executive said:“The easiest way is to rely on China.”
A spokesman for the European Commission said it was unable to comment on Northvolt's business decisions, but said: "The European Commission fully supports our goal of developing the European battery industry.We remain committed to supporting the battery industry, which is at the heart of our decarbonisation ambitions."