Swedish mega-factory troubles show cracks in Europe's tech independence dreams
Europeʼs biggest battery venture faces major money problems while Asian makers dominate the market. Technical challenges and rising competition from China put EUʼs tech independence plans at risk
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
