STOCKHOLM (Reuters) -The Swedish government has no plans to take a stake in lithium-ion battery maker Northvolt, Deputy Prime Minister Ebba Busch told Reuters on Tuesday, as the company continues to explore options to stay afloat.
Northvolt has gone from being Europe’s best bet for a domestic electric vehicle battery champion in a few months to exploring options to stay in business, hampered by production problems, the loss of a major customer and a lack of financing.
“To come up with a completely new system that doesn’t exist today is not on the table,” said Busch, who is also minister of Energy, Business and Industry. “For example, there is no question of going in and taking state ownership of Northvolt.”
Busch’s comments echoed those of Prime Minister Ulf Kristersson, who said in September that the government has no plans to invest in the cash-strapped battery maker, which is downsizing its operations and cutting jobs to stay afloat.
Busch said Sweden’s transition away from fossil fuels would continue regardless of what happens to Northvolt.
The government estimates that companies are planning more than 1 trillion Swedish crowns ($91 billion) in investments in “green” industries over the coming decades, especially in northern Sweden, aiming to benefit from cheap, clean electricity production.
“Huge investments are being made in the green transition in Sweden, regardless of whether the Northvolt project is fully completed or not,” Busch told Reuters.
“That said, Northvolt is important for Sweden and for the entire European Union, because we are in a kind of industrial battle with China and the United States,” she said.
The company has discussed the possibility of bankruptcy protection in the United States as one of several options for the group to survive, two people with knowledge of the matter told Reuters last week.
($1 = 10.9570 Swedish Krona)
