The Fall of a Giant: Northvolt, Europe’s Battery Dream Derailed…
¨Asian firms target Northvolt's assets, with CATL poised to buy its Swedish factory, increasing Europe's dependence on them…
The rope may break; confidence is lost.
Two days ago, the French nuclear-powered attack submarine FS Tourville arrived in Halifax, Canada, drawing attention amid heightened tensions with the United States. Officially described as a routine NATO exercise, the visit signalled French solidarity despite former President Trump’s aggressive rhetoric. France and Canada have significantly strengthened their defence ties, deepened robust military cooperation, and extensively explored technology exchanges. Last week, both countries collaborated closely to support Ukraine, providing substantial assistance and training for Ukrainian forces. Amid Ottawa’s potential shift from U.S. to French submarine technology, this visit underscored France’s readiness to bolster Canada’s security while showcasing its advanced naval capabilities. According to a recent BILD report, new revelations indicate that Russia and the United States have held secret talks to restart the Nord Stream 2 pipeline. This development may have significant implications for transatlantic relations and Europe’s energy security, potentially reshaping the political landscape.
Sources: All Media
Simply coincidences:
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¨Russian energy is abundant, dependable, and (if politics don’t interfere) inexpensive – in contrast, he implies, to the West’s intermittent renewables or high-priced LNG…
***President Vladimir Putin…
***
Putin’s Views on the “Green Agenda” vs. Energy Needs
President Vladimir Putin has criticized Western climate policies as overly aggressive or hypocritical, and emphasized Russia’s role in supplying dependable, cheap energy (mainly fossil fuels) to meet global needs.
Critique of the Western “Green Agenda”
Putin often argues that wealthy Western nations push a “green agenda” that poorer countries cannot afford. For example, at the Valdai Discussion Club in Nov 2024, he said Western countries that had already used fossil fuels to develop and “polluted the atmosphere” now “demand [others] immediately leap to a new level of [clean energy] generation. How can we do that? ...We would have to spend our remaining resources on new technologies, which we must buy from you... It is also a tool of some sort of neo-colonialism”. He urged that if Western nations were sincere about climate goals, they should help poorer countries develop (“provide financing and technology”) instead of imposing strict green rules that stifle development. This implies Putin sees the Western climate push as a “luxury” that only rich, privileged countries can indulge – a sentiment very close to the quote in question.
Putin explicitly framed the Western climate agenda as politicized and unfair. At the Russian Energy Week forum in Sept 2024, he accused some Western countries of using the climate agenda “in pursuit of their neo-colonial aims,” whereas Russia practices a more balanced approach. “Unlike some Western countries that use the climate agenda in pursuit of their neo-colonial aims, we [Russia] put into practice a fair and orderly energy transition that takes into account our natural conditions [and] economic development,” Putin said. This statement underscores his view that Western environmental demands are ideologically driven or domineering, and that Russia will not sacrifice its own economic needs to appease what he sees as a Western “green” ideology.
He has also highlighted what he calls Western hypocrisy on green issues. In a February 2024 TV interview, Putin noted that Europe’s energy crunch forced a return to coal despite green pledges: “Coal generation has increased [in Germany]… now it has become even larger. Well, where is this ‘green’ agenda?”. He accused European Green parties of “capitalising on people’s fears” about climate change to push their political agenda. Such remarks reinforce his skepticism that Western climate policies are practical or honest, especially when those same countries fall back on fossil fuels in a crisis.
Emphasis on Fossil Fuels as “Affordable, Reliable Energy”
The second part of the quote – “We provide what the world truly needs: affordable, reliable energy” – reflects Putin’s consistent messaging that oil, gas (and even coal) remain essential for global prosperity, and that Russia is a reliable supplier of those fuels. While we did not find Putin quoted saying that exact line, he and his officials frequently stress similar points:
Fossil Fuels vs. Renewables: Putin argues that a rapid shift to renewables is dangerous and that traditional energy ensures stability. During an October 2021 government meeting, as Europe faced soaring gas prices, he blamed “unbalanced decisions” in favor of green energy for the market’s “hysteria” and urged a “smooth transition” instead. He warned against “drastic steps” like cutting investment in oil, gas, and coal, emphasizing it’s “vital” to keep those sectors robust. In Putin’s view, neglecting fossil fuels leads to price spikes and energy insecurity – whereas developing them ensures affordable power.
“Climate Agenda” vs. Energy Access: Putin’s Energy Ministry deputies have been even more blunt. Pavel Sorokin, a Deputy Energy Minister, stated in 2024 that Russia’s strategy to address climate change would not simply copy the West’s renewables-first approach if it undermines development. He noted that Russia prefers practical measures like efficiency and using cleaner fuels (gas, nuclear) rather than “litter[ing] everything with wind turbines and solar panels”. “Some realistic measures are to use the clean resources we have – such as gas, nuclear, hydropower,” Sorokin said. This aligns with Putin’s stance that natural gas and nuclear power are reliable, low-emission energy sources that can affordably meet the world’s needs, whereas an over-reliance on renewables is seen as a costly Western “luxury.”
Russia as a Reliable Supplier: Putin often positions Russia as a provider of energy security. Even as Europe cut Russian gas imports in 2022–23, he reminded audiences that Russia met all its contractual supply obligations and offered alternatives (for instance, suggesting Europe could have cheap gas if it opened the Nord Stream 2 pipeline). While these specific offers were entangled in geopolitics, the underlying message was that Russian energy is abundant, dependable, and (if politics don’t interfere) inexpensive – in contrast, he implies, to the West’s intermittent renewables or high-priced LNG.
Skepticism of Green Technology: Putin has even cast doubt on renewables’ environmental benefits, famously quipping in 2019 that wind turbines are harmful to birds and worms. Though somewhat facetious, comments like this reinforce that he doesn’t share the West’s enthusiasm for wind or solar. Instead, he touts Russia’s large natural gas reserves as a relatively clean fossil fuel that can reduce emissions without the cost of wholly “green” solutions. In short, Putin portrays Russian fossil fuels as a pragmatic answer to energy demand, keeping power affordable and reliable, whereas Western leaders (in his portrayal) push renewables as a political fashion that poorer societies can ill afford.
Fact-Checkers:
State-owned Media (Russia): Putin’s Valdai Club speech (reported by RIA Novosti) explicitly frames Western green demands as unrealistic and “neo-colonial”, insisting that countries like Russia must prioritize economic development and energy access. This is a clear indication that he sees the “green agenda” as a luxury of already-developed nations. (RIA Novosti is a Russian state news agency reporting Putin’s words; we’ve provided the translation above.)
Independent News Agencies: International coverage echoes these themes. Reuters, for instance, reported Putin’s 2024 interview where he accused European Greens of “inciting fears” and noted the contradiction of Europe burning more coal. Another Reuters piece in 2021 quoted Putin admonishing Europe’s “hysteria” over energy markets due to a rushed green transition, stressing the need to keep oil, gas, and coal in the mix for a stable supply. These reputable reports corroborate Putin’s skepticism of an all-out renewable push and his championing of fossil fuel energy for stability.
TASS (Russian Energy Forum): An English-language report by TASS (another Russian state outlet) from Sept 2024 cites Putin contrasting the West’s use of the climate agenda for “neo-colonial aims” with Russia’s “fair and orderly energy transition” that accounts for national conditions. While not using the word “luxury,” the implication is that Russia won’t blindly follow what it considers a Western-driven climate agenda that disregards less wealthy nations’ realities.
In summary, Vladimir Putin has repeatedly conveyed that aggressive climate policies are a Western “luxury” or even a cover for dominance, and that ensuring affordable, reliable energy (chiefly via oil, gas, nuclear) is Russia’s priority for itself and its partners. The exact wording of the query seems to be a paraphrase of Putin’s worldview rather than a verbatim quote, but it accurately encapsulates remarks he has made on different occasions. As Putin put it, Russia seeks “sustainable development of the oil, gas and coal sectors” alongside some renewables, because in his view the world “needs all energy sources” to guarantee energy access – a stance implying that the rich world’s green idealism must be tempered by the practical energy needs of billions.
Sources:
Putin’s speech at Russian Energy Week forum, TASS, Sept 26, 2024 – “Unlike some Western countries that use the climate agenda in pursuit of their neo-colonial aims, we are putting into practice a fair and orderly energy transition…”.
Putin’s remarks at Valdai Club, as reported by RIA Novosti, Nov 7, 2024 – criticizing nations that “used all energy sources…polluted the atmosphere, and now demand that we immediately [switch to new generation]. …This is also one of the tools of neo-colonialism” and urging support for developing countries’ energy needs.
Reuters, Feb 15, 2024 – “Putin … criticised the green movement in Europe for capitalising on people’s fears… ‘Where is this “green” agenda?’” (noting Europe’s coal resurgence amid gas shortages).
Reuters, Oct 5, 2021 – Reporting Putin’s view that an overly “drastic” green transition caused market turmoil: “You see what is happening in Europe. There is hysteria…because [some] started to cut back on investments in extractive industries. There needs to be a smooth transition,” and his call to not neglect oil, gas, coal for now.
Reuters, Sept 27, 2024 – Deputy Minister Sorokin (reflecting Putin-era policy) rejecting a renewables-only approach: Russia will favor steps that “not put significant pressure” on development, e.g. efficiency and using gas, nuclear, rather than covering everything with wind turbines and solar panels.
RIA Novosti (Russia) summary of Putin at Valdai 2024 – Western nations “demand that we immediately leap to new technologies…how can we do that? …we’d have to spend our last resources to buy new tech from you… one of the instruments of neo-colonialism.”.
Reuters, Feb 15, 2024 – Note that “Putin himself is known for his doubts about green energy. In 2019 he said wind turbines were harmful to birds and worms. Russia has promoted natural gas as being climate friendly.” (illustrating his attitude toward “green” vs. gas).
Global News Highlights (March 13, 2025)
Energy News:
Top Headlines
The New York Times
Europe Jolted by Northvolt Bankruptcy, EU Green Ambitions at RiskKey Details: Swedish battery manufacturer Northvolt has declared bankruptcy after failing to secure a €5 billion EU bailout. BMW, Volvo, and Volkswagen are now turning to Chinese suppliers, threatening Europe’s plans to dominate electric vehicle (EV) production. EU Commission President announces an emergency summit to rescue the 2035 deadline for phasing out combustion engines.
Wall Street Journal
U.S. Oil Output Reaches 16M Barrels/Day as Trump Declares ‘Energy Dominance 2.0’Key Details: Speaking at CERAWeek 2025, former President Trump pledged accelerated Arctic drilling permits and plans to revoke offshore wind leases, stating, “The green experiment is dead.” U.S. crude exports rise sharply, challenging OPEC+ pricing power.
The Guardian
Global Climate Strikes Target CERAWeek, Slam ‘Ecocide’ of Fossil Fuel GrowthKey Details: Greta Thunberg leads protests in Houston denouncing what she calls an “obscene fossil fetish.” ExxonMobil faces backlash for a newly announced $30 billion share buyback program.
Financial Times
China’s CATL Pushes ‘Battery Colonialism’ Deals with Europe, AfricaKey Details: Leading battery producer CATL is offering discounted lithium-ion units to European automakers in exchange for mining rights in Namibia and Zimbabwe. Critics label these agreements “green debt traps,” warning of long-term economic and environmental consequences.
Reuters
Gazprom Slashes Gas Deliveries to Europe Amid Ukraine Drone StrikesKey Details: Citing “technical issues,” Russia’s Gazprom cuts flow through the TurkStream pipeline by 40%, sending EU natural gas prices soaring to €120 per MWh. Germany pivots to coal-fired power, jeopardizing its 2030 coal phaseout pledge.
Politico EU
France Proposes EU-Wide ‘Atomic Alliance’ to Rival U.S. and ChinaKey Details: President Macron backs a €100 billion EU nuclear fund to build 15 new reactors by 2035. Poland and Austria rejected the plan, calling it “radioactive madness” and setting the stage for a major internal EU conflict over energy strategy.
Bloomberg
Saudi Aramco Cuts Oil Prices in Asia as OPEC+ Unity FraysKey Details: Facing market competition, Riyadh reduced April crude prices by $2 per barrel to maintain its Asian market share. Russia undercuts OPEC+ targets by ramping up Urals crude exports to India at $68 per barrel.
Al Jazeera
Egypt Freezes LNG Exports to Combat Domestic Heatwave BlackoutsKey Details: In response to spiraling power shortages, Cairo halts LNG exports, hindering Europe’s efforts to bolster summer gas reserves. Italy declares an “energy state of emergency” over the supply shortfall.
The Hindu
India Bypasses U.S. Tariffs with 10-Year Solar Deal with ChinaKey Details: A rupee-yuan swap agreement allows India to source cheaper Chinese solar panels despite U.S. sanctions, accelerating progress toward a 500 GW renewable energy target.
African Energy Chamber
Nigeria’s $20 Billion Dangote Refinery Collapses amid Corruption ProbeKey Details: The largest refinery project in Africa grinds to a halt, exacerbating fuel shortages across the continent. Protesters in Lagos demand accountability from the Nigerian National Petroleum Corporation (NNPC).
Geopolitical Developments
U.S.-EU Trade Dispute Deepens
Brussels announces 45% tariffs on U.S. LNG following Trump’s “carbon tax” on European steel.China-Russia Energy Partnership Grows
Beijing agrees to finance the Siberia-2 gas pipeline in exchange for settling oil trades in yuan, further reducing reliance on the U.S. dollar.Latin America’s ‘Lithium OPEC’
Chile and Argentina form a cartel-like agreement, tightening royalties and alarming EV manufacturers such as Tesla and BYD.
CERAWeek 2025: Key Takeaways
Fossil Fuel Renaissance
Saudi Aramco CEO Amin Nasser proclaims that “peak oil is a myth,” while ExxonMobil announces its intent to acquire shale competitor Chesapeake Energy. ***Green Hydrogen Loses Momentum
Shell cancels its $7 billion green hydrogen project in Namibia, citing high infrastructure costs.Nuclear Innovations
Bill Gates’ TerraPower claims a major breakthrough in small modular reactors (SMRs), bolstered by $5 billion in U.S. funding.
Economic & Market Impacts
Volatile Oil Prices
Brent crude fluctuates between $85 and $95 per barrel amid OPEC+ tensions and rising U.S. production.EV Sector Under Pressure
Tesla’s stock plummets by 15% as CATL secures a dominant position in the battery market. Rivian files for Chapter 11 bankruptcy.Green Bond Shake-Up
EU-issued green bonds see yields spike to 8% following Northvolt’s collapse, raising concerns about the region’s clean-tech financing.
Key Quotes
Fatih Birol (IEA):
“The world is sleepwalking into an energy abyss—governments must choose between security and transition, not pretend they can have both.”Jennifer Granholm (U.S. Energy Secretary):
“The Inflation Reduction Act remains our guiding star, but unless Congress steps up, China will dominate clean tech.”Vladimir Putin (President of Russia):
“The West’s green agenda is a luxury for the privileged. We provide what the world truly needs: affordable, reliable energy.”
What to Watch
March 15, 2025: EU emergency summit to address Northvolt’s collapse and salvage the 2035 combustion-engine ban.
March 20, 2025: OPEC+ meeting in Vienna—market eyes on Russia’s compliance with production quotas.
April 2025: India’s general elections could shift the course of its solar partnership with China.
Analysis
The 2025 energy landscape is grappling with three major paradoxes:
Security vs. Transition:
Even as governments pledge to cut emissions, energy security concerns are driving a renewed push for fossil fuels.Subsidy Wars:
The U.S., EU, and China continue to inject massive funding into their energy sectors, leading to competitive distortions and mounting debt risks.Political Polarization:
From the U.S. shift toward aggressive drilling to Europe’s internal battles over nuclear energy, policy decisions increasingly hinge on ideological lines.
Overall, these headlines underscore the fragility and complexity of the global energy transition. As the urgency of climate action intensifies, geopolitical rivalries and market pressures often undermine long-term environmental goals.
***
Mark Silverstone on Mar 11, 2025
Just a comment or two:
1. People have been trying to predict the end of the oil and gas supply, always incorrectly, for many years. Fifty years sounds like as good an estimate as any. But if we wait to replace oil and gas with electricity for 50 more years, or whenever it becomes too expensive because of its scarcity, we accept dire consequences for life on this planet.
As you describe very well, the replacement of oil and gas by renewables is far more feasible now that just a few years ago, and far less feasible now than it will be in just a few years from now. But waiting until it is perfect is not an option. The time to start has arrived.
2. Energy conservation and efficiency measures such as heat exchangers, insulation, energy efficient appliances, etc can assist and partially compensate for increased demand for electricity from data centers, etc.
3. Mis-information and dis-information is successfully and effectively delaying the adoption of renewables and encouraging continued dependence on fossil fuels.
At this moment, agents of the U.S. government, including cabinet secretaries, under secretaries and ambassadors, as well as fossil fuel interests (In at least the referenced case, the cabinet secretary and fossil fuel interests are one and the same!) are telling the developing world that they do the exact opposite of what you suggest: That they should plan their future energy needs on burning fossil fuels.
So, regardless of oil and gas supplies, all of the good news about renewables that you describe will fall on deaf ears without the necessary political and commercial changes.
Gracias y buena suerte!!
Reply: German Toro Ghio on March 11, 2025
Thank you very much Michael, for your interest:
The future is not a fixed destination but: a spectrum of possibilities shaped by relentless tinkering, determined pragmatism, and the occasional stroke of luck.
Forecasts outline ambition; progress relies on hard work. It said:
"Peak Oil" Fallacy: The 2000s "peak oil" narrative collapsed due to unconventional extraction (***shale fracking, deepwater drilling), which unlocked vast reserves. Similarly, today’s "end of gas" forecasts ignore potential innovations like methane pyrolysis or carbon-neutral synthetic gas.
Gas’s Staying Power: Even in aggressive net-zero scenarios, gas remains a transitional baseload fuel for industries like steel and shipping. Its decline hinges on alternatives (e.g., hydrogen, modular nuclear) maturing faster than expected—a gamble, not a certainty.
*** Economic Desperation vs Environmental Ethics, Matt Damon, Promised Land (2012).
2. Technological Plateaus vs. Incrementalism
The "happy face" cost-decline curves for renewables (and any tech) often gloss over hard limits:
Physics and Economics: Solar panel efficiency approaches the Shockley-Queisser limit (approximately 33%), and any further cost reductions necessitate tightening supply chains (such as polysilicon) that are already operating on razor-thin margins.
Infrastructure Lock-In: Grids, pipelines, and factories represent trillions in sunk costs. Transitioning these systems involves more than just developing better technology and overcoming political inertia (for instance, the U.S. gas lobby obstructing transmission lines for renewable energy).
The Innovation Myth: Most breakthroughs occur incrementally. Every "moonshot," like perovskite solar cells, requires decades of trial and error. Fusion, for example, remains perpetually "30 years away."
However:
Exponential Leaps Do Happen: Lithium-ion batteries fell 97% in cost since 1991—a drop few predicted. AI-driven material discovery (e.g., Google’s GNoME) could accelerate such leaps.
Scalability > Novelty: Sometimes "boring" innovations matter most. China’s dominance in solar isn’t about cutting-edge tech but brute-force scaling of manufacturing.
3. The Real Lesson of "Peak Oil"
The "peak oil" debacle teaches us two things:
Adaptation Overrides Depletion: Markets innovate when scarcity looms. High oil prices in the 2010s didn’t cause collapse—they funded fracking.
Demand Peaks Matter More: Oil may never "run out," but demand could peak by 2030 as EVs and biofuels advance. Similarly, gas demand might plateau not due to scarcity but policy (e.g., EU carbon tariffs) or cultural shifts (corporate ESG mandates).
4. Pragmatic Energy Realism
Rather than betting on utopian forecasts or dooms, focus on:
No-Regrets Policies: Invest in grid modernisation, methane leak detection, and R&D for modular nuclear/hydrogen—adaptable solutions regardless of long-term scenarios.
Scenario Planning, Not Prophecy: Shell’s 1970s "scenarios" (not predictions) prepared it for oil shocks and climate policies. Governments should similarly hedge their bets.
Embracing Uncertainty: ***¾COVID¾ and the ***¾Ukraine¾ war demonstrated how swiftly energy systems can pivot. Flexibility (e.g., LNG terminals convertible to hydrogen) is more valuable than rigid forecasts.
***: Steve Bannon's Suspicions About COVID-19's Creation in China
Steve Bannon, former White House Chief Strategist during the Trump administration, has repeatedly voiced suspicions that the SARS-CoV-2 virus originated in a laboratory in Wuhan, China, rather than naturally.
Key points:
Bannon was an early prominent advocate of the lab leak theory.
He used his "War Room" podcast to promote this view.
His claims were part of a broader debate about the virus's origins.
The exact origin of SARS-CoV-2 remains under scientific investigation, and no definitive consensus has been reached as of October 2024. Both laboratory origin and zoonotic transmission theories continue to be studied.
References:
Rogin, J. (2021). "Chaos Under Heaven: Trump, Xi, and the Battle for the 21st Century."“ Houghton Mifflin.
Baker, N. (2021). "The Lab-Leak Hypothesis." New York Magazine.
U.S. Senate Committee on Health, Education, Labor and Pensions (2023). "An Analysis of the Origins of the COVID-19 Pandemic."
World Health Organization (2023). "Scientific Advisory Group for the Origins of Novel Pathogens (SAGO): Report."
***: ¨Russia and U.S. Held Secret Talks on Restarting Nord Stream 2 Pipeline – Bild...
https://energycentral.com/c/og/natural-gas-cartel-emerging-global-influence-yes-or-not
https://energycentral.com/c/og/gigantic-shark-devourer-energy-and-aqua
Ultimately, the true challenge in the electrical industry is not the fuels or sources for energy production; rather, the insurmountable issue lies in water scarcity and poor decision-making spending.
You can't possibly deny me...
Have a wonderful day filled with good health, happiness, and love…
In December 2023, Energy Central recognized outstanding contributors within the Energy & Sustainability Network during the 'Top Voices' event. The recipients of this honor were highlighted in six articles, showcasing the acknowledgment from the community. The platform facilitates professionals in disseminating their work, engaging with peers, and collaborating with industry influencers. Congratulations are extended to the 2023 Top Voices: David Hunt, Germán Toro Ghio, Schalk Cloete, and Dan Yurman for their exemplary demonstration of expertise. - Matt Chester, Energy Central
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You can't possibly deny me...
Have a wonderful day filled with good health, happiness, and love…
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The Giant Northvolt Has Filed for Bankruptcy: A Detailed Analysis.
In a stark blow to Europe’s green energy ambitions, Northvolt, once hailed as the continent’s brightest hope in the global battery race has filed for bankruptcy. The Swedish startup’s collapse marks not just the failure of a company but a crisis for Europe’s strategy to break free from Asian dominance in critical clean-tech industries. The fallout threatens jobs, automaker supply chains, and the European Union’s vision of a self-reliant, sustainable future.
A Star Burns Too Bright, Too Fast
Founded in 2016 by ex-Tesla executive Peter Carlsson, Northvolt aimed to be Europe’s answer to Asian battery giants like CATL and LG Energy Solution. Backed by $10 billion in funding from automotive titans (Volkswagen, BMW), institutional investors, and EU governments, the company pledged to build sprawling “gigafactories” producing sustainable lithium-ion batteries. Its flagship plant in Skellefteå, Sweden—powered by hydropower and designed to employ 3,000 workers—symbolized a greener industrial revolution.
But by 2024, cracks emerged. Production delays, defective batteries, and equipment failures plagued operations. A cancelled $2 billion BMW contract and a failed $5 billion loan triggered a cash crunch. By early 2025, Northvolt’s insolvency left investors reeling, workers jobless, and Europe’s battery strategy in tatters.
Why Northvolt Imploded
The bankruptcy stems from a perfect storm of missteps and market forces:
1. Financial overreach: Battery gigafactories cost billions, and Northvolt’s aggressive expansion—simultaneously building plants in Sweden and Germany and eyeing the U.S.—burned through cash. The company couldn’t pay its bills when key revenue streams dried up.
2. Operational Stumbles: Battery manufacturing is unforgiving. Tiny defects in electrode coatings or chemical impurities can ruin entire batches. Northvolt’s rush to scale led to low yields, missed deadlines and frustrated automakers. “They tried to build a plane while flying it,” said one industry analyst.
3. Asian Price Wars: Chinese rivals like CATL flooded the market with cheaper batteries, undercutting Northvolt’s prices. Meanwhile, rising interest rates and volatile lithium costs squeezed margins.
4. Strategic Bloat: The company’s push into recycling and raw material refining diverted resources. “They lost focus,” admitted a former engineer. “You can’t do everything at once.”
Human Toll: Shattered Lives and Broken Trust
The bankruptcy’s human cost is stark. In Skellefteå, a region banking on Northvolt for revival, layoffs have left families scrambling. “We moved here for stability,” said Anna Lundström, a single mother and former quality control worker. “Now, I don’t know how I’ll pay rent.”
Workers also raised safety concerns. Leaked reports cited chemical exposures, inadequate protective gear, and gruelling 80-hour weeks. Subcontractors faced accusations of exploiting migrant labour. “The pressure was relentless,” said one technician. “We were told Europe’s future depended on us, but we were exhausted.”
Automakers Left in the Lurch
Northvolt’s collapse leaves automakers scrambling. Volkswagen, BMW, and Volvo—which bet on the startup for EV batteries—now face supply gaps. Sourcing from Asian firms could delay Europe’s EV rollout and inflate costs. “This is a wake-up call,” said a BMW executive. “We need multiple suppliers, but Europe isn’t ready.”
The energy storage sector is also hit. Northvolt’s Polish plant, meant to supply grid-scale batteries, leaves renewable projects in limbo. “Europe’s energy transition just got harder,” said a German utilities adviser.
Geopolitical Reckoning: Europe’s Weak Spot Exposed
Northvolt’s failure underscores Europe’s vulnerability in the global battery war. While China controls 70% of battery production and the U.S. lures firms with Inflation Reduction Act subsidies, the EU’s fragmented policies and reliance on imports have stalled progress.
“Europe wanted a homegrown champion but couldn’t match Asia’s state-backed support,” said energy analyst Clara Richter. “Without raw material access or cheaper power, it’s impossible to compete.”
The EU’s Battery Alliance, launched in 2017 to capture 25% of global production by 2030, now seems aspirational. Meanwhile, Asian firms circle Northvolt’s carcass: CATL may acquire its Swedish plant, deepening Europe’s dependence.
Lessons from the Ashes
Northvolt’s collapse offers hard lessons:
Scale Wisely: Startups must balance ambition with execution. Rushing gigafactories without mastering basics risks disaster.
Diversify Supply Chains: Europe needs raw material partnerships and recycling infrastructure to avoid Asian dominance.
Policy Overhaul: Public funds, like phased milestones, should come with strings attached. “Blank checks won’t work,” said an EU lawmaker.
What’s Next for Europe’s Battery Hopes?
While Northvolt’s assets may be sold for scrap, Europe’s battery dream isn’t dead. Startups like France’s Verkor and Norway’s Freyr still aim to scale, and the EU is eyeing solid-state battery breakthroughs. But the path forward demands realism.
“This isn’t about one company failing,” said industry veteran Lars Jensen. “It’s about whether Europe can learn, adapt, and fight smarter in a cutthroat global market.”
For now, the lights are off in Skellefteå. But the race to power the green future is far from over.
Sources:
Dagens Nyheter, Today