The Swedish government has no plans to take an ownership stake in Northvolt, the lithium-ion battery maker facing financial challenges, Deputy Prime Minister Ebba Busch said on Tuesday.
Busch confirmed that state ownership was not under consideration as the company grapples with production setbacks, the loss of a key customer, and funding shortages.
“To come up with a completely new system that doesn’t exist today, that’s not on the table,” said Busch, who also serves as Sweden’s minister for energy, business, and industry. “To go in and have state ownership in Northvolt, for example, is not on the table.” Her remarks echo those of Prime Minister Ulf Kristersson, who in September dismissed the possibility of government investment in Northvolt, which is cutting operations and jobs in a bid to remain solvent.
Busch stressed that Sweden’s transition away from fossil fuels remains a priority, independent of Northvolt’s struggles. The government estimates that more than 1,000 billion Swedish crowns ($91 billion) will be invested in green industries over the coming decades, with a focus on leveraging northern Sweden’s access to inexpensive and clean electricity. “There are huge investments happening in the green transition in Sweden whether or not the Northvolt project gets fully completed or not,” Busch added.
While acknowledging Northvolt’s significance to both Sweden and the European Union, Busch highlighted the global competition in clean energy industries. “Northvolt is important for Sweden, and it’s important for the whole of the European Union because we are in something of an industrial fight with China and the United States,” she said.
Amid these challenges, Northvolt is reportedly exploring several survival strategies, including potential bankruptcy protection in the United States, according to sources familiar with the matter.
Source: Reuters
