Its voltage may vanish! Huge EV Battery Company on the brink of Going Out Of Business

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Northvolt, an electric vehicle battery company started by Tesla employees in 2015 could go out of business this week, leaving companies, including BMW, in a position where they have had to delay the release of cars.

Northvolt continues to try to secure short-term financing; however, its prospects have fallen apart because of late deliveries and the likelihood it will run through any new financing quickly. The company has already raised $15 billion through investments from Volkswagen, Goldman Sachs, Siemens,and JPMorgan, and none of these appear inclined to put in more capital.

Northvolt’s goal was to end the period during which China dominated the EV battery business, and ss the EU and the U.S. lock Chinese EVs out of their markets with tariffs, Chinese battery companies could hold back their products in international trade negotiations, thus worsening the situation for carmakers.

Volkswagen’s woes
The only lifeline that may be thrown to Northvolt is from VW, which is struggling to gain EV traction in the U.S. and Europe. VW has cut a deal with Rivian for $5.8 billion, partly to use the U.S. company’s intellectual property rights to jump-start its deeply troubled EV business. VW’s bet on EVs has been such a disaster that its finances have been affected.

Short of a VW rescue, Northvolt will be another victim of the West’s efforts to catch China, the leader in EV batteries and inexpensive EVs, and a setback for the manufacturers who want to level that playing field.