Automotive News: EV battery maker Northvolt hemorrhaging cash

Swedish EV battery manufacturer Northvolt has been hemorrhaging cash due to reduced demand for Electric Vehicles (EVs) as consumers push back on the Green New Scam.

Northvolt will cut numerous jobs and sell or seek partners for its energy storage and materials businesses as Europe’s leading battery hope aims to survive by refocusing on its struggling first gigafactory in northern Sweden.

Northvolt has been heavily delayed by problems at its factory just below the Arctic Circle as well as suffering from European carmakers slowing their plans to move to electric vehicles.

Northvolt said on Monday that it would pause its cathode active material production, selling one site and buying instead from Chinese or Korean companies, as well as seeking a buyer or partner for its energy storage business based in Gdańsk, Poland.

It will also delay plans, according to executives, to build three more gigafactories — in a joint venture with Volvo Cars in Sweden and in Germany and Canada — but said it would provide further details on that and the number of job cuts later.

As an example, this past June BMW announced the cancelation of a substantial $2 billion battery cell order with Swedish battery manufacturer Northvolt.

BMW and Northvolt inked a long-term agreement in 2020 for battery cells destined for BMW’s fifth-generation batteries. These cells, to be manufactured in Sweden using 100% renewable energy, were initially slated for production this year. However, due to production delays and quality concerns, BMW decided to sever ties, turning to other companies for its battery supply needs.