In a significant setback for Europe’s efforts to reduce dependence on Chinese battery suppliers, Swedish battery manufacturer Northvolt filed for Chapter 11 bankruptcy protection in the United States last month. The move is part of the company’s strategy to restructure its debt and secure new funding. Although the process is expected to be completed by early next year, Northvolt has emphasized that it will continue operations as usual for the time being.
Behind the scenes, however, sources reported that several European automakers may face delays in their future vehicle models due to issues at Northvolt. Among the affected projects is the upcoming all-electric Porsche 718 replacement, which could miss its scheduled launch by late next year. A Porsche spokesperson declined to confirm or deny the rumor, stating that they could not comment on supplier issues. “We cannot comment on supplier-related matters at this time,” the spokesperson said.
The Porsche 718’s potential delay is linked to its reliance on Northvolt’s batteries, which are crucial for the vehicle’s high energy density. This is particularly important for sports cars, where smaller battery packs are needed to save weight. Additionally, the electric 718 is reportedly facing other challenges, including issues with a component in its drivetrain, which could contribute to a delay as well.
While Porsche faces uncertainty, Audi’s plans may also be affected, as the automaker has a contract with Northvolt for batteries to power models based on the PPE platform, including the A6 e-tron. However, Audi also sources batteries from other suppliers, including CATL and LG. As a result, the impact on Audi’s production schedule may be less severe, as the company could potentially secure an alternative supplier.
The bankruptcy has also cast a spotlight on Northvolt’s founder, Peter Carlsson, who stepped down as CEO following the filing. Some critics have pointed to his management style, citing reports that he imported “unrealistic schedules” and “overambitious goals” from Tesla’s corporate culture. These issues are believed to have contributed to significant operational problems, including BMW’s decision to pull out of a multi-billion-dollar contract with Northvolt.
As the restructuring process unfolds, European automakers remain on edge, concerned about the potential disruption to their supply chains.
Source: Handelsblatt
