The EUs grand tech plans are hitting hard times as its biggest battery project struggles to stay afloat. Peter Carlssonʼs Northvolt factory in northern Sweden (which got about €15bn in backing) cant pay its bills and might need bankruptcy help soon
The factorys problems show bigger issues: its making just 25% of planned weekly output. A Swedish tech expert explains the challenge:
Battery-making needs perfect conditions - exact humidity nano-meter precision and zero mistakes in about 20 production steps
The situation got worse when BMW dropped a €2bn deal in mid-2024; now even Volkswagen doesnt want to be on Northvolts board anymore. The Swedish govt wont help; EU officials havent shown any real support either
Chinaʼs making things harder - its got way more capacity than needed: 2‚600 GWh last year versus 950 GWh global demand. Theyʼre also winning with cheaper LFP batteries (now just $53 per KWh) while European makers stuck with old-school tech
- VW cut planned factories from 6 to 3
- Frances ACC stopped German-Italian plans
- Most EU battery makers face delays or stopping
The choice for Europe is clear-cut now — spend huge money on tech catch-up or depend on Asian makers (like Tesla does with BYD in Germany). Herbert Diess‚ ex-VW boss thinks Europe should just let Asia make batteries; focus on what it knows best instead
Brussels likes saying it has “the worlds best battery rules“ but that dont help when you cant make any batteries