Northvolt Files For Bankruptcy as Europe's Battery Champion Loses Spark 58
Swedish battery maker Northvolt has filed for Chapter 11 bankruptcy in the U.S. and announced CEO Peter Carlsson's departure following a year marked by production delays and workforce reductions.
The company, once viewed as Europe's challenger to Chinese battery dominance, reported $1.2 billion in losses against $128 million revenue for 2023. Despite securing $15 billion in funding and $50 billion in orders by late 2023, with major stakeholders including Volkswagen (21%) and Goldman Sachs (19%), Northvolt faced mounting challenges. BMW canceled a $2 billion contract in June, prompting job cuts and project suspensions.
The company, once viewed as Europe's challenger to Chinese battery dominance, reported $1.2 billion in losses against $128 million revenue for 2023. Despite securing $15 billion in funding and $50 billion in orders by late 2023, with major stakeholders including Volkswagen (21%) and Goldman Sachs (19%), Northvolt faced mounting challenges. BMW canceled a $2 billion contract in June, prompting job cuts and project suspensions.
So much for "we can do that ourselves" (Score:2, Redundant)
Looks like the actual cells for all moden battery technologies will continue to come from China.
Re:More like a coup for the CCP... (Score:4, Interesting)
Looks like their techniques of dumping succeeded.
People accused China of dumping back in the 200x's, claiming they'd raise prices once the competition was gone. Here we are, twenty years later, and ... the batteries are cheaper than ever.
Protectionists have cried wolf on this too many times.
If we're serious about stopping global warming, we need cheap batteries and solar panels—and that means Chinese.
begging Russia for natural gas, but begging China for batteries
That's not a good analogy. Europe needs to import gas every day just to keep the lights on. But batteries will continue to work even if no new batteries are imported.
Re:More like a coup for the CCP... (Score:5, Insightful)
I think the real issue is that European environmental standards will always prevent them from being competitive with China barring any revolutionary breakthroughs that make manufacturing batteries cleanly cost no more than doing so in ways that lead to polluting the environment.
Re: More like a coup for the CCP... (Score:2)
Hi rsilvergun (Score:3)
Why do you keep posting about an invasion of Taiwan in two years like it's a certainty? What's your source for this?
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Fox "news"?
Not actually going out of business (Score:2)
Wait... a Swedish company is filing for bankruptcy in the US?
So, the company isn't actually going out of business, only the US branch.
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The summary is misleading. (As another commenter said,) they only bankrupted the US subsidiary, to shield themselves from that part of the debt. On the EU side they are negotiating new investments. We'll know in few days if they were successful
How? (Score:3)
In today's climate, how can a battery company lose money? That's got to be difficult!
Despite securing $15 billion in funding and $50 billion in orders by late 2023
Seriously, how do you lose money with an order book like that?
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Based on the summary they failed to deliver and orders got cancelled.
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Based on the summary they failed to deliver and orders got cancelled.
The summary appears to unfairly identify BMW as their downfall. That’s 2 billion. That only leaves another forty-eight fucking billion to question about planned failure and embezzlement.
(Would probably be trivial to hide and run off with a couple hundred million in no-extradition fun funds with that kind of money being (kinda) regulated and audited..)
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I assume BMW cancelling is a symptom of them not being able to deliver.
Of they are not able to deliver I would assume that means they aren't gonna see any/much of that 50 billion, already cancelled or not.
If the 15 billion didn't get them where they need to be, and they're very far away from bing there, it seems pretty likely nobody is lending them more money so they go bankrupt.
That 50 billion in orders is useless if it'll take them 50 years to produce them, or if they will be produced at a gross loss.
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Well, things like this:
And in the US, at least....well, demand for EVs has dropped over the past years with people finding out they aren't quite the "paradise" people put them up to be....
Like if you can't charge at home....lack of charging infrastructure unless you live on one of the coastal areas...and the cost.
ICE is still doing fine here, and the hybrids ar
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Well, things like this:
And in the US, at least....well, demand for EVs has dropped over the past years with people finding out they aren't quite the "paradise" people put them up to be....
Who told you EV sales have dropped? You seem awfully opinionated about a subject you are apparently fairly ignorant about. EV sales in the US have increased every year both in absolute numbers and as a percentage of overall vehicles.
https://www.eia.gov/todayinene... [eia.gov]
https://www.coxautoinc.com/mar... [coxautoinc.com]
https://www.edmunds.com/electr... [edmunds.com]
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Not just "a subject", actually, but quite a lot of subjects.
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Sure, they are still selling....but we're reaching the saturation point of those that want EV's...have them.
And in your first link that is a combo of EVs and Hybrids.....with Hybrids selling at better paces that pure EVs.
Again, EVs are fighting many fronts in the US....horrible resale value....you lose MUCH more the second you drive off a lot than you do with an ICE or Hybrid.
There is still not a valid recharging infrastructure....which
Re:How? (Score:5, Informative)
> Seriously, how do you lose money with an order book like that?
By not being able to produce a sellable product in the needed quantity.
Northvolt is trying to do to many thing at once; they are trying to produce bleeding-edge cells as well as enable high recycled content manufacturing. All that R&D costs money and takes time, and turning that R&D into production lines takes more money and more time. They are quickly running out of both.
Basically all of the Chinese manufacturers have decades of experience manufacturing batteries and related technologies, and have only recently pivoted to the kinds of large scale systems in demand now. For them it's a relatively easy transition. They have their R&D set up, they have all the in-house production experience, and most importantly they have their existing customer base and revenue streams to sustain them through the transition.
When Tesla built their first gigafactory, they basically just copy-pasted existing production lines to produce cells that were already commodity class, and they still burned over $6B (nearly twice what they thought it would cost) to get it running.
=Smidge=
Re: How? (Score:1)
The problem is Northvolt was mandated between the market and the EU/US regulation to use recycling as material sources, be cheaper than China, source conflict metals like lithium from ethical sources, be clean and zero emissions end to end, spend money on impact study grifters and be completely non-polluting.
None of that is possible for the EV, solar or wind manufacturing industry, hence why it is concentrated in Asia. Regulation bogged the company down to the point they cannot effectively make anything.
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To do what? In this specific case he couldn't do it. Elon Musk spent a fortune to build battery tech which was off the shelf and not competitive with other products. To this day many of his cars rely on batteries from other companies including those in China.
Elon Musk also has been heavily pushing his companies to develop new battery tech and been promising grand things, yet they have produced nothing that is market viable. It is now end of 2024 which means that Tesla has been failing for over 3 to produce
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Those are separate companies each doing their own things, not one company doing too many things at once. And, no, Elon Musk isn't doing the actual work that those companies are doing.
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Those are separate companies each doing their own things, not one company doing too many things at once. And, no, Elon Musk isn't doing the actual work that those companies are doing.
Elon Musk could be hit by a bus and those companies would carry on doing what they are doing. Some of them useful things, some of them not so much.
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Who told you EV sales have dropped?
He said demand has dropped. As in the automakers don't expect to sell as many EVs as they originally thought they might.
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Demand hasn't dropped; it's still increasing. However, it's not growing as fast as projected. "Only" 10-15% growth quarter over quarter instead of 20-30% like everyone thought it would be.
So yeah, they had to scale back their ambitions, but that's not the same as a decrease in demand.
=Smidge=
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Europe missed the boat, basically. The Chinese especially, but also the Koreans have big factories (dwarfing Tesla's) and mature technology.
Japan is another tragedy. They were early pioneers but failed to develop the technology and were overtaken. Toyota keeps promising to leapfrog everyone with a solid state battery, but it remains to be seen if they will delivery, or if someone else will get there first.
We have got to stop thinking that some tariffs are going to do it for us, and start competing. Europe s
Hydrogen cars (Score:2)
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I suppose the EU could slap on 100%-200% tariffs on the Chinese EV imports, or whatever it takes to put pricing on par with domestic offerings.
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I suppose the EU could slap on 100%-200% tariffs on the Chinese EV imports, or whatever it takes to put pricing on par with domestic offerings.
We did that in the USA because this country mostly just plays lip service to achieving climate goals, whereas the EU kind of takes the situation a bit more seriously.
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Hey, we're all free countries....with governements that are answerable to the wishes of their citizens (mostly)...as it should be.
So, you have a choice....let China run your domestic producers out of business in the name of "climate"....and find yourself in the situation of being beholden to and dependent upon a country that is outright antag
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China is selling EVs so cheap that they'd actually start cutting into ICE sales if they were available in the US. The tariffs weren't only about protecting any investments we've made in domestic EV production *cough*Tesla*cough*, but also keeping the domestic ICE manufacturers happy as well.
The EU, on the other hand, legitimately wants to see ICE phased out. Making EVs less affordable would be antithetical to that goal.
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Hey, they are "Big Boy" countries...and can make their own decisions in the EU....but, they must weigh the dangers of allowing a major part of their economy be dependent upon a country that is openly antagonistic against them and the west in general......
I would think EU would be a bit gun shy of risking some major national security after seeing what happened during Covid with
Re:Hydrogen cars (Score:4, Insightful)
Re:Hydrogen cars (Score:5, Interesting)
My guess is that the EU will slowly transition towards hydrogen,while continuing to allow IC engines for the forseeable future.
I would be very surprised. The difficulty of storing hydrogen in a lightweight vehicle are not likely to be solved any time soon. Low pressure gas means low capacity, high pressure gas takes heavy tanks, storing it as hydrated metals even heavier, and liquid hydrogen takes a lot of power to keep cryogenic.
Not because it's better for the planet,
You got that right. Hydrogen is currently produced by cracking natural gas: it is a fossil fuel.
Solar hydrogen plants exist (Score:3)
There are multiple solar-powered electrolysis hydrogen plants in Melbourne. Toyota has one for filling the Mirai fleet (they won't actually sell you a Mirai, only lease them to fleet operators), there's one used for filling the HFCEV buses that are on trial, and I think there's another one used for filling delivery trucks or something. I'm honestly surprised it works as well as it does - I thought it would be a
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My guess is that the EU will slowly transition towards hydrogen,while continuing to allow IC engines for the forseeable future. Not because it's better for the planet, but because they know they can't compete with china in the EV market.
What makes you think they can compete in the hydrogen market? There's only a handful of hydrogen cars on the market right now, 3 Japanese and 1 South Korean. Also why do you think hydrogen would be viable in the EU market? You know there's a total of 81 hydrogen stations in Germany right now, which is the undisputed king of hydrogen refuelling infrastructure? Less than half of them are capable of filling a passenger vehicle. On the flip side there's 115,000 EV charging points.
You think the EU is going to ab
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What makes you think they can compete in the hydrogen market? There's only a handful of hydrogen cars on the market right now, 3 Japanese and 1 South Korean. Also why do you think hydrogen would be viable in the EU market? You know there's a total of 81 hydrogen stations in Germany right now, which is the undisputed king of hydrogen refuelling infrastructure? Less than half of them are capable of filling a passenger vehicle.
https://www.caranddriver.com/n... [caranddriver.com]
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Slashdot losing more people. (Score:1)
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Same here. Slashdot seems to work just fine without JavaScript.
html-load.com seems to be considered a scam/malware site [scam-detector.com]. I'm not sure if Slashdot itself uses this. Or some of its included ads are accessing it. Either way, I expect it to be gone soon. What's left of Slashdot's reputation depends on it.
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A few of us still here.
Not sure what you're seeing, I've not gotten any popups like that before....
What browser and ad blocker are you using?
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Noscript with Firefox showed this warning.
The maintainers of this site, slashdot.org are now pulling in this Javascript dependency.
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What Is Chapter 11? (Score:3)
But there are no guarantees for Northvolt's future, and the technology is perhaps surprisingly difficult. The company supplies batteries but too few.
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Boeing is next in 3..2..1...
Moneygrab scam. (Score:3)
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Several Northvolt factories will continue to operate.
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Yes, that is true.
But it is also true that the battery factories in Europe seem to be struggling in general. Batteries are becoming a commodity, and making commodities in Europe is really hard given the higher costs of manufacturing.
Engines were not commodities, but batteries are. That is the main difference.
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Start following the money... 13b$ and one factory...
Is that supposed to be an outrageously high price for something that is cutting edge tech? Sure Elon spent half that but then he did so with the ability to produce common off the shelf and above all *old tech*. As a result Tesla's battery business is currently getting annihilated by CATL and other competitors. He's poured billions more into R&D and attempts to retool his factory for the as yet unsuccessful 4680 cells.
Investing in new cutting edge tech costs money.
Losers (Score:1)
It's 2024 and you eurofags can't build a battery?
You are a failed society of effete men and 3rd world invaders.