No State Aid Promised for Northvolt Buyers, Says Swedish Minister

Minister for Business Ebba Busch (KD) confirms that she has been in contact with several serious interested buyers of the assets in the bankruptcy estate of battery manufacturer Northvolt. But they should not count on capital support from the Swedish state.

» Published: July 10 2025 at 11:08

No State Aid Promised for Northvolt Buyers, Says Swedish Minister
Photo: Magnus Lejhall/TT

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It is not what is on the table at present, says Ebba Busch to TT.

We need to start by getting past the question of whether there is anyone who is making a serious bid and with whom one can go all the way to harbour, she adds.

The bidding process is the responsibility of the bankruptcy administrator Mikael Kubu from Ackordcentralen, she emphasizes.

The government and I personally will assist where we have the opportunity to assist, says Busch.

Support ceiling of 1.7 billion

According to new rules for state aid that the EU Commission nailed down as late as the end of June, a member state can provide investment support of up to 15 percent of the capital - but at most 150 million euro (approximately 1.7 billion kronor) - to get an activity started within clean technologies.

This includes battery manufacturing, says Stefan Sagebro, expert on state aid at Svenskt Näringsliv.

According to Sagebro, Northvolt's bankruptcy shows that 1.7 billion is only a fraction of the money that must be invested to start up and long-term secure large-scale battery manufacturing in Skellefteå.

But it can still play a role when it comes to getting other financing, that one can show that one has the state behind one's back. One must also take into account that support can play a greater role than just as a line in the calculation, he says.

Support from the state - which must be approved by the EU and can therefore take 6-12 months - can also be given in the form of regional support, by issuing loan guarantees or with fee and tax rebates.

Warns of "foreign power"

Secured electricity supply and rapid permit processes can also improve the investment climate, Sagebro reminds.

I think that there will need to be support in many different forms, but above all, one needs to decide, from Sweden's and Europe's side, that this is an activity that we should have, says Busch.

She adds that she hopes that Sweden and the EU have established their own battery manufacturing within five years.

I think it would be important both for our competitiveness, but also from a security perspective - that not all civil infrastructure is essentially left in the hands of foreign power and specifically China.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers
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