SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Northvolt: "Tried to do too much at the same time"

Northvolt has invested in several new factories at the same time. It may have become too much to handle, according to Hampus Engellau, automotive analyst at Handelsbanken. I think they wanted to kill three birds with one stone, he says.

» Updated: 24 September 2024, 20:28

» Published: 23 September 2024

Northvolt: "Tried to do too much at the same time"
Photo: Björn Larsson Rosvall/TT

There is currently an overcapacity in the battery market, according to Hampus Engellau. But for battery manufacturer Northvolt, the parallel factory constructions can also have created problems.

The factors have probably interacted. But for Northvolt, it's probably more about planning to build capacity and investing in new factories in several different locations at the same time, he says.

It has become too much to handle.

Tougher competition

Besides Northvolt's first so-called gigafactory in Skellefteå, the company is building a battery factory together with Volvo Cars in Torslanda, Gothenburg. There is also activity or planned activity at several other locations, both in Sweden and abroad.

Several factors – including tougher emission regulations – are driving the development.

For the time being, electric car sales have weakened in Europe, and several major customers – such as Volkswagen and BMW – have encountered tougher competition in China, notes Engellau.

When they have generally weaker demand, car manufacturers have started to waver and have difficulty seeing how it will look like in the coming years, he says.

Lack of skills?

At the same time, he continues, the slowdown in the market is probably only temporary. This makes it difficult to scale up in the future.

It's a difficult situation generally for car manufacturers and also for Northvolt. This is competent personnel being laid off, while knowing that when demand takes off again, it will be difficult to find competent personnel, says Engellau.

Magnus Henrekson, professor of economics at the Research Institute of Industrial Economics, believes that the public should get answers on how Northvolt will continue to be financed.

They have no revenue, so it must be financed by credits. Does it mean that the banks have given them a reprieve so that they can continue to loan-finance their salary costs?, says Henrekson, and continues:

The local community needs to get answers on how much credit has been granted and how much time they have.

The future of Northvolt stands and falls with whether the banks are willing to keep the business alive in the hope that it will be able to take off, he says further.

Production is almost negligible compared to what it should be, just a few percent, so it's incredibly far away.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Cryptocurrency victory in the US Congress
1 MIN READ

Cryptocurrency victory in the US Congress

ECB Hiker: Can Cut Even if Fed Doesn't Cut
2 MIN READ

ECB Hiker: Can Cut Even if Fed Doesn't Cut

Now Black Week starts – here are five best tips
2 MIN READ

Now Black Week starts – here are five best tips

He still believes in the German Northvolt factory
2 MIN READ

He still believes in the German Northvolt factory

Chinese Cars from Spanish Factory
1 MIN READ

Chinese Cars from Spanish Factory

The Ski Holiday Becomes Increasingly Expensive – "Like a Luxury Trip"
2 MIN READ

The Ski Holiday Becomes Increasingly Expensive – "Like a Luxury Trip"

Nvidia CEO: Don't Close the Borders
1 MIN READ

Nvidia CEO: Don't Close the Borders

Pilot Strike – Finnair Cancels 300 Flights
1 MIN READ

Pilot Strike – Finnair Cancels 300 Flights

Billion-dollar amounts at stake in Northvolt's crisis
2 MIN READ

Billion-dollar amounts at stake in Northvolt's crisis

German industry leader warns of new energy crisis
1 MIN READ

German industry leader warns of new energy crisis

The new ISK tax is decided
3 MIN READ

The new ISK tax is decided

Amazon doubles investment in AI company
1 MIN READ

Amazon doubles investment in AI company

Trump nominates billionaire to finance minister
3 MIN READ

Trump nominates billionaire to finance minister

Cheerful on Wall Street – bitcoin nears dream limit
2 MIN READ

Cheerful on Wall Street – bitcoin nears dream limit

Northvolt to Apply for Swedish Reconstruction as Well
2 MIN READ

Northvolt to Apply for Swedish Reconstruction as Well

Billion Fines for Unreasonable Fees on Air Travel
1 MIN READ

Billion Fines for Unreasonable Fees on Air Travel

Bosch reduces workforce by 5,500
1 MIN READ

Bosch reduces workforce by 5,500

Northvolt's CEO sold shares for hundreds of millions
1 MIN READ

Northvolt's CEO sold shares for hundreds of millions

Clothing Chain Rises on the Stock Exchange After Sales Forecast
1 MIN READ

Clothing Chain Rises on the Stock Exchange After Sales Forecast

Seven disputed taxes that can save the planet
3 MIN READ

Seven disputed taxes that can save the planet