The Northvolt crisis: a threat to the European car industry and the future of electric cars
At the end of November, Northvolt, a Swedish company specialising in batteries for electric vehicles, filed for protection from creditors in the United States. The move is intended to help the company overcome its financial difficulties and enable it to restructure.
However, this situation could have a negative impact on European car companies, which saw Northvolt as an alternative to Chinese battery suppliers.
The company’s crisis could affect German carmakers, for example, as Handelsblatt pointed out. Among the affected models could be the new Porsche 718 sports car, which was to use Northvolt’s lighter and more compact batteries with high energy density. This technology is essential for sports cars. However, Porsche declined to comment on its supplier’s situation.
The problems could also affect Audi, which planned to use Northvolt batteries in its new PPE platform, including the A6 e-tron. Northvolt also supplies batteries to Scania. Both Audi and Scania are owned by Volkswagen, one of Northvolt’s most important investors, which has also received funding from Goldman Sachs.
In the past, Northvolt had a major contract with BMW, which ended when the Munich-based carmaker pulled out because of battery quality problems. This situation underlines the complications facing Northvolt and their potential impact on the European car industry.
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