Sweden: EU support could help Northvolt attract new owner

Sweden’s deputy prime minister Ebba Busch has called on the European Union to amend its clean-tech funding rules to help bankrupt battery cell maker Northvolt secure a new owner.

Speaking after a meeting with European Commission industry chief Stephane Sejourne in Brussels, Busch said the current funding criteria, which favor highly innovative projects over existing technologies, risk sidelining established companies like Northvolt—one of Sweden’s largest corporate failures and a key player in Europe’s efforts to build a competitive battery manufacturing industry against China.

“The EU must move from words to action and decide on that money this spring,” Busch said, stressing that such support is “crucial” for Northvolt to survive this challenging insolvency period. She warned that if the Commission continues to support only newcomers within the battery sector, the clean industrial deal on European soil could fall into China’s hands, as Europe remains heavily reliant on imported green technologies.

Northvolt, once seen as Europe’s best hope to rival Chinese battery makers, recently filed for bankruptcy in Sweden, upending the region’s ambitions for domestic battery production. Busch emphasized that revising the funding rules to include existing battery makers could help attract a new owner for Northvolt, providing a lifeline for the company and preserving Europe’s competitive edge in the clean-tech arena.

The European Commission, which last month announced a commitment of €6 billion for clean industries through the EU Innovation Fund, has yet to comment on whether its funding criteria might be expanded. The fund is currently earmarked for projects deemed highly innovative, leaving established companies like Northvolt ineligible despite their critical role in the regional supply chain.

As the debate over EU funding continues, industry analysts say that broadening access to these funds could be pivotal in sustaining Europe’s burgeoning clean technology sector and reducing dependency on imports from China.

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