Northvolt's crash leads to tax increase

The battery company was supposed to save the municipality, the region, and Sweden, but it didn’t turn out that way. After the bankruptcy, there is a large gap in the region’s treasury, which must be compensated for with a higher tax.

Northvolt’s bankruptcy in March 2025 became the largest in modern Swedish history, a collapse that crushed pension savers’ assets, left thousands without jobs, and was marred by scandals, deaths, and suspected financial irregularities. The remnants were bought by an American company.

The bankruptcy means an economic loss that Region Västerbotten will compensate for with a higher tax next year. The increase will be 50 öre per earned hundred SEK and is expected to generate 390 million SEK in revenue.

Peter Olofsson (S), chairman of the regional council, admits that the bankruptcy contributed to the tax increase but also that increased healthcare costs played a role.

130 million in the red

“It’s 130 million that we lose in tax revenue just in 2026. It definitely affects us. It’s not money that we have on the side,” he told Affärsvärlden.

The bankruptcy also affects next year’s budget for Skellefteå, but according to Lorents Burman (S), chairman of the municipal executive board, it’s not as bad as for the region and not enough to require a tax increase there either.