Northvolt's financial collapse has not entirely crushed Europe's dream of developing its own electric vehicle batteries but fulfilling it is likely to require Chinese cash and expertise.
That has left Europe's ambitions to build its own battery industry looking a distant dream. In recent years, Northvolt led a wave of European startups investing tens of billions of dollars to serve the continent's automakers as they switch from internal combustion engines to electric vehicles.
“The Chinese are technologically 10 years ahead of the West in batteries. That's a fact," he said. At least eight companies have postponed or abandoned EV battery projects in Europe this year, including China's Svolt and joint venture ACC, led by Stellantis and Mercedes-Benz.
Why are European battery makers struggling to make good products?
Two months before Northvolt filed for bankruptcy in the US, Robin Zeng, known as China's “battery king”, had a quick but grim answer as to why European battery makers were struggling to make good products. “They have a wrong design . . . they have a wrong process . . . and they have the wrong equipment.
Who makes EV batteries?
But in terms of EV batteries, Asian participants including CATL, BYD, and LG Energy Solution and SK On of South Korea, control about 70 per cent of the global market. Many of the 30 gigafactory projects in Europe have also been designed and built with the help of Chinese and Korean companies. Northvolt chief executive Peter Carlsson.
Besides Northvolt, Mercedes-Benz Group AG and Stellantis NV have stalled work on two battery plants in Germany and Italy, while Volkswagen has said its European cell factories should take longer to reach capacity. UK battery startup Britishvolt closed for business last year as well.
Who is Europe's biggest hope for an electric vehicle battery champion?
Europe's biggest hope for an electric vehicle battery champion filed for U.S. Chapter 11 bankruptcy protection on Thursday after talks with investors and creditors including Volkswagen and Goldman Sachs for funding failed.