On Wednesday morning, it became clear that Northvolt is going bankrupt. Thus, the largest bankruptcy in modern Swedish history is a fact. But the Social Democrats, who have been praising the company to the skies, do not think that taxpayers have spent enough money on Northvolt yet.
Last year, Northvolt’s problems became increasingly frequent, and in the end, it was no longer possible to maintain the facade. But this does not worry the Social Democrats, as the party proposes that the state should become a shareholder in the company to ensure that the operations can continue in Sweden.
READ ALSO: Northvolt applies for bankruptcy
“One should not close the door to such an important future industry,” says Social Democrat’s spokesperson on business policy, Fredrik Olovsson, to DN.
One of the reasons the party gives is China’s dominance in the battery market, and they want to avoid Chinese owners taking over Northvolt.
According to Olovsson, the government now has a responsibility to find new owners who are suitable to run the business and thus does not exclude the possibility that the state may become a shareholder to save the company.
The Government Held a Press Conference
At a press conference, Minister of Energy and Enterprise, Ebba Busch (KD), commented on the bankruptcy.
“The hope is that the operations can be maintained during the bankruptcy process. This is an active and well-functioning operation that many actors depend on,” said Busch.
“We hope that a way will be found to keep the operations running as smoothly as possible, not least so that staff is not lost or the facility risks losing value.”
“Of course, I hope that the operations will be able to find a new, long-term owner. And the state is, of course, ready to support in that work.”
SD Criticism
One who has previously criticized the uncritical approach to Northvolt is Tobias Andersson (SD). He believes that politics has worsened the situation surrounding the company.
“Due to the actions of politics, the size of this bankruptcy has become so large. If the project had not been praised, secured public support, and pointed out as a pioneering investment within the EU, the inflated bubble would not have been as large when it burst,” says Andersson to DN.
READ ALSO: Tobias Andersson (SD): Scandal-ridden Northvolt – a direct consequence of ideological capitalism
“If we are to manage the green transition, it is the many small streams that matter, not high-risk projects that have been inflated by politics,” he asserts.
Professor Condemns Continued Operation
Magnus Henrekson is a professor of economics at the Research Institute of Industrial Economics and was one of the few who early on criticized Northvolt. He does not believe that the major Chinese manufacturers are interested in placing their operations there, even if they were to get the building for free, as they believe it is built incorrectly.
He believes that Northvolt’s owners have made many mistakes along the way.
“Perhaps the most irresponsible thing, in my opinion, was not focusing on learning to industrially produce good batteries in Skellefteå. Before even learning to produce batteries industrially in Skellefteå, they started building a factory in Borlänge, one in Gothenburg, one in Germany, one in Montreal, and even one in Texas,” he says to TT.
Earlier, Henrekson also criticized so-called green steel.
READ ALSO: Researchers criticize green steel: “Better to leave it”