Volkswagen’s Northvolt Investment Loses Over Half Its Value
Volkswagen’s ambitious bet on European battery production has taken a significant hit. The automaker’s €1.4 billion investment in Swedish battery manufacturer Northvolt is now worth less than half its original value, according to Reuters sources. This dramatic devaluation comes as Northvolt filed for Chapter 11 bankruptcy protection last week.
The Downward Spiral of a Battery Unicorn
Key developments in Northvolt’s troubled year:
- Massive Workforce Reduction: Laid off 1,600 employees in September 2024
- Asset Liquidation: Sold off assets from its Cuberg acquisition in November
- Financial Bleeding: Reportedly burning through $100 million monthly (Swedish media)
- Leadership Exodus: Co-founder and CEO resigned during bankruptcy filing
What This Means for Volkswagen
The German automaker has been gradually writing down its Northvolt stake throughout the current fiscal year as the battery maker’s financial situation worsened. While the exact current valuation remains undisclosed, industry analysts suggest no recovery is likely in the short term.
The Bigger Picture for European Battery Production
This development deals a blow to Europe’s aspirations for homegrown battery manufacturing capacity. Northvolt was once considered a flagship project in the continent’s green energy transition, with Volkswagen’s investment representing a major vote of confidence in localized EV supply chains.
Sources: Reuters, TechCrunch, Bloomberg
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