Sweden's green industry hopes hit by Northvolt woes

Published On Jan 2, 2025, 7:04 PM

The Northvolt battery factory in Skellefteå, Sweden, once seen as a key player in Europe's green energy transition, is facing serious financial difficulties. After amassing debts of $5.8 billion and laying off a significant portion of its workforce, the company’s struggles are attributed to a decline in electric vehicle demand, issues with production targets, and strong competition from lower-cost alternatives in China. The leadership shake-up at Northvolt, including the resignation of its CEO, has raised concerns about the viability of Sweden's ambitions in the green technology sector. Despite this, some experts remaining optimistic about Sweden's overall role in sustainability investments.