Battery manufacturer Northvolt, which has sought bankruptcy protection in the US, received over billions in support from Germany, even though a report warned against it.
A secret report casts a dark shadow over Northvolt's future in Germany. The report, which has been kept secret by the German government, reveals a bleak economic outlook for the battery manufacturer.
The report shows that Northvolt will make a loss until at least 2029. For the same reason, the government was also warned against throwing money into the project.
The secret report, which was subsequently leaked to the media, has caused a stir in Germany, where German Economy Minister Robert Habeck has come under heavy fire.
Critics claim that Habeck deliberately withheld information about Northvolt's financial problems for political reasons, including because Germany poured 600 million euros, equivalent to 4.4 billion kroner, into the battery factory.
This is written by the German media Berliner Zeitung .
Northvolt is in a serious financial crisis. The company has struggled to increase the production rate of battery cells, resulting in the loss of major customers such as BMW.
The German brand withdrew an order worth 14 billion kroner last year.
In addition, Northvolt has been forced to close a factory in Skellefteå and lay off 1,600 employees.
To deal with the crisis, Northvolt has filed for bankruptcy protection in the US. This decision has further shaken confidence in the company's future. However, the board of directors has the choice to let the company continue.
In the midst of the crisis, Northvolt's founder and former CEO, Peter Carlsson, unexpectedly resigned. His departure has sparked speculation about internal conflicts and management problems.
In addition to the financial problems, there have also been reports of quality defects in Northvolt's battery cells. Several car manufacturers have reportedly complained about production defects and low performance in the battery packs themselves.
In Germany, there is criticism of the government's handling of the investment in Northvolt. Some believe that the investment was too risky and that the money should not have been sent in the first place.
Critics question whether taxpayers' money is being spent responsibly, pointing to the secret report as evidence that Northvolt's future is uncertain.
Despite all the problems, construction of Northvolt's factory in Schleswig-Holstein is continuing. The factory is expected to cost around 4.5 billion euros.
Whether the factory will be a success or an expensive failure is still unknown. Northvolt's future hangs in the balance, and the secret report has only increased the uncertainty. Money is also being wasted here at home.
In fact, every Danish wage earner will lose money if the Swedish battery manufacturer goes bankrupt.
The Danish pension company ATP has also invested billions of kroner in the company. Read more about it here .
