Among those who hailed Northvolt and its alleged successes was the municipality of Skellefteå, which had great confidence that the company would bring great benefits. When reality finally caught up and the house of cards collapsed, the previous hopes could prove costly for the municipality.

If Northvolt’s operations in Skellefteå do not continue after the bankruptcy and closure, it will mean a billion-dollar blow for the municipality. This is shown in a new report that Dagens industri has seen.

According to the report, prepared by the consulting firms WSP and Reasonadvise on behalf of Region Västerbotten, a shutdown of the operations would result in the municipality losing out on tax revenues of around one billion kronor by 2030, or 267 million kronor per year.

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The scenario would also lead to a decrease in employment by more than 3,700 people in Skellefteå and 4,300 in Västerbotten.

Another risk identified in the report is the potential brain drain from the municipality.

In a scenario where the bankruptcy trustee sees opportunities to continue the operations, even on a significantly smaller scale, the consequences are predicted to be only “limited”.

Crisis organization activated

When Northvolt’s bankruptcy became a reality, Skellefteå municipality stated that “it is more important than ever that national actors make decisive efforts to ensure that expertise and battery production remain in Sweden, that new owners are put in place as soon as possible, and that production can be maintained during this time”.

“This is a heavy day for Skellefteå. After today’s announcement, I am primarily thinking about all those who are directly and indirectly affected. I am also, of course, thinking about the immense loss it would be at both a local, national, and European level if we lose the opportunity for European battery production and the important expertise gathered here. Because it is important to emphasize that what is now affecting Skellefteå in the short term will hit Sweden and Europe much harder,” said Lorents Burman, chairman of the municipal council (S).

“Ultimately, this is about Europe’s competitiveness. In the current situation, we expect the government and national actors to increase their commitment to ensure this expertise and European battery production. This is not something that a municipality should or can handle on its own.”

After the announcement, Skellefteå municipality’s crisis organization was activated, with a main focus on coordinating the work within the municipal group, collaboration with other parties, and ensuring an ongoing and up-to-date situation analysis.

Still believe in the green transition

However, not everyone was entirely pessimistic and still have confidence in the so-called green transition:

“Today’s announcement is very sad, and we know it will have a negative impact on our municipality in the short term. At the same time, we need to remember that Skellefteå’s development journey started long before Northvolt, and there are many other establishments and important investments here. With our unique assets, Skellefteå is a central player in the green transition,” said municipal director Kristina Sundin Jonsson.

“The important thing now is to have a new owner in place as soon as possible and to maintain production during this time. Here, everyone needs to come together at the local, regional, and national levels.”

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