Bo Normark is very optimistic about the possibility of finding a new owner for the battery factory in Skellefteå.
Bo Normark, with a Skellefteå background, is a battery expert at EIT InnoEnergy, which has been involved in Northvolt's development, is very positive about finding a new owner for the battery factory.
While a buyer could acquire all Skellefteå operations, he believes a segmented sale is more probable. The production of battery cells and Revolt, the recycling division, are functioning operations that he expects to attract significant buyer interest.
– The more complicated part is with Northvolt Upstream, which focuses on producing cathode materials. That is the part that Northvolt has predominantly had problems with, and the operation has now been paused, he explains.
Normark notes that other battery manufacturers typically source cathode materials from external suppliers, rather than producing them in-house.
– On that front, there are both Asian and European manufacturers of high quality. In Europe, this includes companies like BASF and Umicore, he says.
Normark emphasises that the battery issue is just one component of the broader future of the European automotive industry. Through his work with EIT InnoEnergy, he contributes to providing recommendations to the EU Commission on how best to support the European battery industry and, consequently, the automotive sector.
On March 5, European Commission President Ursula von der Leyen unveiled a comprehensive action plan to bolster the European automotive industry's success and global competitiveness.
The plan focuses on facilitating the green transition, streamlining regulations, and enhancing innovation and technological development within the sector. During the launch, she stated that the automotive industry is at a "crucial juncture" and underscored the need to unlock its innovative potential to foster a sustainable and robust sector within the EU.
Bo Normark points out that no other battery manufacturers have their own cathode production but instead buy it from other suppliers.
The action plan also emphasises targeted support for battery production. During the launch, Ursula von der Leyen expressed a desire for the European automotive industry to lead and promote domestic battery production to mitigate strategic dependencies. To facilitate this, concrete measures could include direct production subsidies.
– The mere fact that the proposed action plan explicitly mentions the possibility of production support for batteries could play an important role for anyone considering acquiring the battery factory in Skellefteå, says Normark.
Numerous European companies and conglomerates could potentially acquire the Skellefteå operations.
However, Asian involvement, including from Chinese firms, cannot be ruled out. He notes that neither the EU, its member states, nor European industry generally oppose non-European investments in the European battery value chain.
However, there are strong preferences regarding collaboration structures, with European majority ownership likely to be a prerequisite.
Bo Normark emphasises that the battery issue is just one part of the entire automotive industry's future in Europe.
– The only instance I'm aware of where a European country directly rejected an Asian investment within the battery value chain was when Chinese PTL sought to build a battery anode factory in Timrå.
The decision was made by a newly established Swedish authority, the Inspectorate for Strategic Products (ISP), which regulates foreign direct investments in Swedish companies involved in sensitive activities.
Normark believes that US president Donald Trump's policies, which hinder Chinese establishments in the U.S., have increased Chinese interest in Europe. As an example, he cites the automotive group Stellantis, with brands such as Peugeot and Opel, which is planning to open a joint-venture battery factory in Spain with Chinese battery giant CATL.
The factory, with a 47 billion kronor investment, aims to commence production by the end of 2026.
CATL's CEO Robin Zeng.
– In addition, Volkswagen and CATL recently signed a comprehensive cooperation agreement concerning the development of electric vehicle batteries.
Beyond potential Chinese investors in a new ownership structure, there could also be Korean and Japanese interests. One such company is the Japanese firm Panasonic.
– They were pioneers and established the first battery factory in Reno in collaboration with Tesla. They currently do not have a manufacturing facility in Europe.
Normark notes that Panasonic has yet to supply batteries to any European automaker. Panasonic had also considered building a battery factory in southern Norway in partnership with, among others, Norsk Hydro, but those plans were ultimately abandoned.
On March 5, European Commission President Ursula von der Leyen launched an extensive action plan to ensure the success and competitiveness of the automotive industry in Europe on the global stage.