Ebba Busch: Chinese ownership of Northvolt would be "dangerous"

On Wednesday, Northvolt's Swedish company was declared bankrupt.
The scale of the bankruptcy is enormous – it is the largest in modern Swedish history. 5,000 employees are affected, including around 3,000 in Skellefteå.
Norran English is reporting on the crisis.

 "I think it is obvious that the government and the state also offer the opportunity to hold this together."

"I think it is obvious that the government and the state also offer the opportunity to hold this together."

Foto: Photographer: Glenn Fahlgren

Ekonomi2025-03-13 11:14

Ever since the announcement of Northvolt's lay-offs in the autumn, representatives of Skellefteå municipality have criticised the government for leaving Skellefteå alone with the aftermath of Northvolt's setbacks.

– There have been many conversations, but it has not yielded much concrete, no promises and no actual financial support, said mayor Lorents Burman (S) yesterday.

When asked if it will be different this time, Ebba Busch replied at Wednesday's press conference in Skellefteå that municipalities and regions basically have their own competence to handle the problems that arise.

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Ebba Busch visits Skellefteå regarding Northvolt's bankruptcy.

– But because so many people are affected, I think it is obvious that the government and the state also offer the opportunity to hold this together, and we will see how we do it in the best way.

Since last autumn, the municipality and Region Västerbotten have repeatedly pointed out the difficulties in getting international talent to stay, based on the strict rules that apply to work permits in Sweden. First, that those who lose their jobs only have three months to find a new job, but also that the job they get must have a salary of at least 28,480 kronor a month. But the answer to the question of relaxing the rules was ambiguous.

– We will return to the rules, they are as they are today, there are some exceptions today regarding the 90 days, but it is an issue that my ministerial colleague Johan Forssell will return to – whether there is reason to change the rules, says Busch.

The minister of energy and enterprise also said that it is now important to keep production going for the time being.

– We need to fight for Northvolt and support keeping production going and my message is clear to all employees who are wondering what is happening now: We cannot promise anything, but there is good hope for a new owner and the government is doing everything we can to make it possible, says Busch.

How are you going to find a new owner?

– I am not the bankruptcy trustee, but the government is in direct contact with the bankruptcy trustee Mikael Kubo and where he sees that we can help, we will do so, or do so with the help of other actors in Swedish society.

However, the minister is clear that she hopes a European owner will take over, and she does not want to see any Chinese ownership to save the business.

– I think that is very dangerous. In this difficult security situation, it is about our independence, she says.

She also says that according to the regulations for foreign investments in Sweden, it is the Inspectorate for Strategic Products, ISP, that should assess the issue – not the government.

Instead, Busch calls for new forms of EU support for green transition and battery manufacturers in Europe:

– The money that the EU has now allocated for battery manufacturing must not only go to start-ups but must also be able to go to getting already established players to fly.

UPDATE: Thursday, 13:30

When Northvolt announced its lay-offs last fall, it quickly triggered similar actions from several local companies. Now, with the entire Swedish Northvolt operation facing bankruptcy, the consequences are likely to be even more severe.

– It is clear that this is a very tough blow for Skellefteå. This is the largest bankruptcy in Swedish industrial history, says city manager, Kristina Sundin Jonsson.

She fears that more negative news will await the local business community.

– Local, regional, national, and international businesses will be affected by this in different ways. And we haven't seen the full extent of the effects yet, she says.

Around 2010, Skellefteå reversed a negative population trend and has since experienced growth.

– In Skellefteå, we have faced crises before, and we have been able to handle them well. However, this crisis will require national commitment, says Sundin Jonsson.

She hopes that the bankruptcy trustee will continue to operate the business until a new owner can be found.

– We currently have a functioning battery production facility in Skellefteå. There are both products and customers. So, we hope that a solution will be found as soon as possible, she says.

UPDATE: Thursday, 11:15

Production at the battery factory continues

Yesterday, production at Northvolt Ett was paused, according to Matti Kataja, communications manager at Northvolt. 

On Wednesday morning, the company took the staff away from the production lines to have an information meeting where they talked about the bankruptcy

– Following that, we held meetings in smaller groups within the departments, and then we paused production. 

– We also had an internal, local information meeting after lunch. The morning meeting was for the entire Northvolt. A representative from the bankruptcy trustee also attended a meeting. Matti Kataja says that they had decided to cancel the afternoon and night shifts. 

– We resumed operations this morning at 07:00 and restarted production. Now, the whole of Northvolt Ett is operational again, as usual. 

The plan is to maintain production until further notice.

– Currently, we are operating under the direction of the bankruptcy trustee, who has requested that we continue production, and that is what we are doing.