The crisis-stricken and bankrupt battery company Northvolt builds such bad batteries that they are not suitable for use in electric cars, new documents show.
The bankrupt battery manufacturer Northvolt is now discarding brand new batteries for electric cars due to quality problems.
Reuters writes this on the basis of a number of documents about production errors at the factory in Skellefteå, Sweden.
The company has not been able to meet its own production targets, which has led to significant challenges.
According to internal documents seen by Reuters, it became clear in week 45 that many of the batteries did not meet the quality requirements and therefore could not be delivered to customers. So the car brands.
Northvolt had a goal of producing 100,000 shipping-ready batteries per week by the end of 2024. But in that week, they only managed 20,000.
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Now the company states that the original target is no longer relevant, as according to them it was only an informal benchmark.
– The plan is currently under review based on the implementation of our strategic review, which affects how we operate our main facility Northvolt One, reads a comment to Reuters.
In an attempt to reduce the company's costs, Northvolt has decided to scale down production significantly.
The company has temporarily closed one of its two production plants in Skellefteå, which is expected to last until December. At the same time, production now only runs on weekdays. The company has also cut staff sharply, laying off around 20 percent of its employees globally.
The current customers that Northvolt prioritizes supplying to include, among others, Scania and car brands such as Audi and Porsche.
But the production problems have already had major consequences for the new revelations. Last summer, Northvolt lost a major contract with BMW worth approximately DKK 15 billion.
Sources with insight into the situation point to several causes for the problems, including machine errors, inexperienced staff and unrealistic ambitions from management.
However, Northvolt rejects the criticism. Instead, they choose to emphasize that both machines and employees live up to the industry's high standards. The company also maintains that progress has been made.
– It is a difficult industry. However, we have made great progress over the course of the year. So much so that today we consistently produce high performance battery cells for our customers week after week, states Northvolt.
Still, it is rumored that management is about to throw in the towel. And that it could come flying like a bankruptcy already this week. Read more about it here .
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