Since the summer, Northvolt's trajectory has shifted dramatically, from a European green energy darling to a financial crisis. The recent chapter 11 bankruptcy filing has left its major shareholders, including ATP, facing significant losses.
ATP, holding a 5% stake in Northvolt, has remained tight-lipped about the devaluation of its investment.
But now CEO Martin Præstegaard has acknowledged the dire situation. When asked by DR News about the value of ATP's investment, Præstegaard said:
– I can say that it probably won't be very far from zero. There's not much left of our investment.
This stark contrast to 2022, when Præstegaard suggested ATP expected a positive return in the billion-dollar range from Northvolt, highlights the rapid decline of the company.
Præstegaard attributed Northvolt's downfall to overly ambitious expansion and operational challenges:
– It's been difficult to get production running effectively. It's been difficult to build a large company with many thousands of employees quickly. They bit off more than they could chew.
ATP's investment strategy, particularly its involvement in Northvolt, has faced criticism. Præstegaard defended the fund's approach, acknowledging the inherent risks in such ventures. He emphasised the need to assess the viability of any future investment in Northvolt based on specific circumstances.
– We'll just have to see what emerges on the other side, Præstegaard said.
– The goal is to get a viable company. We'll just have to see if that's possible.