“There will be no government ownership of Northvolt” said Finance Minister Elisabeth Svantesson in an interview on Friday. “I don’t want to speculate on what might happen, but the most important thing for us as a country is that technology, human resources and skills remained in Sweden and Europe“.
So far, an agreement regarding an emergency rescue package for Northvolt worth $300 million has not been reached. Talks between the company, lenders and investors are complicated by uncertainty surrounding the electric car market, Bloomberg notes.
On Thursday, the business daily Dagens Industri reported, citing anonymous sources, that Northvolt may seek Chapter 11 bankruptcy protection in the US. The company declined to comment to Bloomberg on the report, stating that Northvolt is “continuously discussing options” and that it continues to dialogue with stakeholders.
Will the Chinese get involved?
Bloomberg notes that if a deal with current shareholders is not reached, Northvolt may need new owners. CEO Peter Carlsson did not rule out accepting investors from China or other Asian countries.
Such a move could undermine the company’s credibility as a domestic European manufacturer that can compete with Chinese battery powerhouses such as Contemporary Amperex Technology, or CATL. Therefore, the Swedish government under a law introduced at the end of last year which allows authorities to block foreign participation in sensitive companies, may block the takeover of Northvolt by the Chinese.
