But things haven\u2019t been easy for it lately. Last month, the Swedish company lost a lucrative $2 billion contract with carmaker BMW, which is also invested in the company. The order went to Samsung instead, underscoring the looming threat of Asian competition for the likes of Northvolt.<\/p>\n
Today, Northvolt said it would close <\/a>its research subsidiary, Cuberg, in San Francisco and move its research and development work back to Sweden.\u00a0<\/p>\n \u201cToday is a sad day for me, the entire Cuberg family that I have known for the last nine years, and the battery industry at large,\u201d Cuberg founder Richard Wang said in a LinkedIn post<\/a> on Tuesday.\u00a0<\/p>\n The San Francisco-based company, which spun out of Stanford University in 2015, was acquired by Northvolt three years ago<\/a> to expand its operations in America amid strong EV demand.\u00a0\u00a0<\/p>\n It\u2019s unclear what the R&D move to Sweden generally means for Northvolt\u2019s U.S. operations. The company encouraged Cuberg employees to apply for other roles in its research lab in Sweden and its offices in Montreal, Canada.\u00a0\u00a0<\/p>\n Representatives at Northvolt didn\u2019t immediately return Fortune<\/em>\u2019s request for comment.\u00a0<\/p>\n Northvolt is a big deal in the EV space\u2014as it works with some of the biggest automakers, from Volvo to Volkswagen.\u00a0<\/p>\n Two former Tesla executives founded the company<\/a> in 2017 and its funding now stands at $20 billion through debt, equity and grants.\u00a0<\/p>\n While Sweden is no stranger to the car-making industry, Northvolt has been a flagbearer of Europe\u2019s pioneering contributions to EVs as the first homegrown company<\/a> in the battery-making sector otherwise dominated by countries like China and South Korea.\u00a0<\/p>\n The company expanded operations globally in a relatively short span of time, forging partnerships with big and small vehicle companies.\u00a0<\/p>\n JONATHAN NACKSTRAND\u2014AFP\/Getty Images<\/p>\n<\/div>\n Those wins have been eclipsed recently by some challenges facing the broader EV market and others hurting Northvolt specifically.\u00a0<\/p>\n For instance, delivery delays have impacted<\/a> Swedish truck company Scania as it tries to expand its electric rigs. Its key factory, located in Skellefte\u00e5, Sweden, has fallen behind in its production plans. It is expected to only reach full capacity by 2026<\/a>, which, if achieved, could produce 16 gigawatt hours\u2014enough to power 272,000 cars.\u00a0<\/p>\n Separately, there have also been concerns surrounding the safety of workers<\/a> at Northvolt\u2019s factories following episodes involving the death of a few workers (the company has found no connection between their death and factory work).\u00a0<\/p>\n The EV industry has generally seen a slump in demand owing<\/a> to higher interest rates, which also impact the demand for batteries. This has caused Northvolt\u2019s financial woes to snowball. Northvolt reported a loss of $1.2 billion in 2023, up nearly fourfold from a $285 million loss a year earlier.\u00a0<\/p>\n The Swedish giant said it would push back its timeline to IPO, now aiming for 2025<\/a>.<\/p>\n To be sure, some of these issues have hurt other battery makers, too. Automotive Cells Company, a battery maker backed by Stellantis, has halted the construction<\/a> of factories in Germany and Italy. Volkswagen has slowed down its efforts to grow new battery factory capacities as well.\u00a0\u00a0\u00a0\u00a0<\/p>\n A confluence of these factors prompted a strategic review of the European battery company\u2019s operations announced in July<\/a>. It could potentially result in a delay in new Northvolt-led factories as the review will include an \u201cevaluation of timelines and capital allocation,\u201d according to Reuters.\u00a0<\/p>\n \u201cWe have been a little too aggressive in our expansion plans and that is what we are now reviewing,\u201d CEO Peter Carlsson told Swedish paper Dagens Industri last month.<\/p>\n The review is set to conclude in the autumn.\u00a0<\/p>\n There\u2019s no disputing Northvolt\u2019s place in Europe\u2019s EV push. Still, where Northvolt goes from here could depend on how it overcomes operational setbacks and rethinks its global battery-making expansion.\u00a0\u00a0\u00a0<\/p>\n<\/div>\nNorthvolt\u2019s big moment<\/h2>\n
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<\/p>\nSurviving the EV winter<\/h2>\n