Swedish battery manufacturer Northvolt, once hailed as Europe's hope against reliance on China, is facing a severe crisis. After BMW cancelled a major contract and amidst rumors of bankruptcy, Northvolt announced layoffs and police are investigating the death of a worker.
Three years ago, Sweden ’s then prime minister, Stefan Löfven, visited Northvolt ’s base near the Arctic Circle in Skellefteå –– and declared the city “the future” in the fight against the climate crisis . Its work had huge significance for Sweden and the world, the Social Democrat said.
The arrival of the battery manufacturer was not only supposed to be a flagship project for Sweden’s “green industrial revolution” but hailed as Europe’s big hope against dependence on oil and imported batteries from China. Since its foundation in 2016 to build “the world’s greenest battery”, Northvolt’s rapid rise has attracted billions of dollars of investment and orders from the world’s biggest car companies including Volkswagen, BMW and Volvo., much of this enthusiasm is starting to look like fantasy. In June, BMW cancelled a $2.5bn contract with Northvolt. And last week, amid a spiralling cashflow crisis, the battery manufacturer announcedRumours swirl of potential imminent bankruptcy and even Chinese sabotage – both dismissed by Northvolt as “speculation”. Meanwhile, police are investigating the death of a 25-year-old man at the factory amid suspicions that workplace violationsmay have led to his death. The mood among employees, known as “Northvoltare” (Northvolters), is said to be one of deep concern as they await redundancy details, while workers hired from outside Sweden are faced with the prospect of having to leave the country. Oliver Szabo, the chief security officer for the union IF Metall, said at the Northvolt Labs research and development campus in Västerås, central Sweden, where 400 jobs are to be cut: “Of course people are worried. We see that people don’t know if they will be affected or not.” Although there had been problems, generally Northvolt had been a good workplace, Szabo said, but leadership could have been better. And the alleged workplace death in Skellefteå was “unacceptable”, he adde
Battery Maker Northvolt Sweden Climate Crisis Bankruptcy
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