Chinese battery manufacturer PTL abandons plans to build a factory in Sweden. Now the company is furious about the country's safety requirements. 2,000 jobs will go to waste.
Chinese battery manufacturer PLT has abandoned plans to build a factory in Sweden, meaning the end of 2,000 potential jobs.
PLT also had ambitions to establish a battery factory in Sweden. The factory was intended to be located in Torsboda in Timrå Municipality, and production would focus on anodes for electric car battery packs.
This is what SVT writes.
The investment was estimated to be worth 13 billion Swedish kronor (equivalent to approximately 9.1 billion Danish kronor). The factory was planned to employ around 2,000 people.
However, the project has encountered unexpected obstacles. Swedish authorities, specifically the State Inspectorate for Strategic Products, have set a number of requirements that PLT considers unattainable.
– The conditions are not reasonable, neither from a business perspective nor in light of the short timeframe, say representatives of PLT.
One of the requirements from the authorities is that PLT's Chinese parent company must have limited influence over the Swedish factory. This must be ensured by a Swedish partner entering the project and assuming a significant part of the economic risk. PLT believes that this is an unmanageable requirement, especially given the short time horizon.
"It's impossible, it won't work," says Andreas Hamrin, spokesperson for PLT Sweden.
PLT has officially complained about the decision to the Swedish government. The government does not wish to comment on the matter at this time.
But Minister of Development Assistance and Foreign Trade Benjamin Dousa (M) told SVT that there is no general ban on investments from specific countries in specific sectors. Each investment case is assessed individually.
The presentation of the factory project in Torsboda took place in May 2023. At that time, it was expected that the factory would be ready to start production around the turn of 2025/2026. Now the future of the project is uncertain, and 2,000 potential jobs are hanging by a thread.
The failed project is a setback for the Swedish battery industry. It also raises questions about how Sweden should handle foreign investment in sectors of strategic importance.
PLT's situation illustrates the challenges Chinese companies can face when seeking to establish themselves in Western countries. Security concerns and political considerations can be significant barriers to such investments.
It is not yet known whether PLT will resume plans for a battery factory in Sweden at a later date. For now, however, it is a fact that the company's ambitions in Torsboda have been put on hold.
The case has raised concerns among local politicians and business leaders who fear it could have a negative impact on the region's economic development and are calling for a smoother process for approving foreign investments.
PLT has not yet commented on whether the company will seek alternative locations for its battery factory, but it is likely that the company will consider other countries with a more favorable investment climate.
While there are many indications that the Chinese company is pulling out of Sweden, another Swedish company has recently received support to continue its death struggle. Read more about it here .
