Homegrown Swedish Battery Startup Admits Relying on Imported Components
Northvolt, Europe’s first ‘homegrown’ gigafactory, acknowledges dependence on Chinese suppliers for cathode active material
Swedish battery startup Northvolt has admitted that a crucial component in its battery production is imported, despite positioning itself as a pioneer in Europe’s independent battery manufacturing industry. The company, which operates Europe’s first so-called homegrown gigafactory, has disclosed its reliance on Chinese suppliers for cathode active material.
The revelation comes ahead of an investigative documentary set to air on Sweden’s national broadcaster SVT. The program, produced by the current affairs show Uppdrag Granskning, will highlight Northvolt’s struggles to create a fully localized battery production process. Attempts to manufacture its own cathode active material at its Northvolt Ett factory in Skellefteå, northern Sweden, reportedly failed, forcing the company to source the component externally.
Two employees interviewed by the show confirmed that Northvolt had to import cathode active material from China, despite its initial ambitions. Founded in 2016, Northvolt set out to produce “the world’s greenest battery” and was widely viewed as Europe’s answer to reducing reliance on fossil fuels and Chinese-made batteries. However, despite outsourcing key materials, the company continues to market Northvolt Ett as “Europe’s first homegrown response to [the] opportunities and needs of an electric world.”
Following inquiries from SVT, Northvolt released a statement on its website, acknowledging that it has been sourcing cathode active material from external suppliers while working to establish its own in-house production. The company listed China, Japan, South Korea, and Sweden as approved sources. Northvolt also revealed that in October, it had “suspended activities” in its Upstream 1 division, which was responsible for cathode material production, as part of a broader strategic review.
Northvolt asserts that the timing of its disclosure was unrelated to the upcoming documentary. The company has been facing mounting challenges, including significant production delays. In November, it filed for Chapter 11 bankruptcy protection in the United States. Shortly after, co-founder Peter Carlsson stepped down as chief executive. Last week, Northvolt finalized the sale of its industrial battery unit in Gdańsk, Poland, to Swedish truck manufacturer Scania for an undisclosed sum.
Despite the setbacks, the company insists that it never promised to manufacture an “all-Swedish battery” but had originally planned to begin cathode production before financial and operational difficulties forced a temporary halt. A company spokesperson stated: “To our knowledge, the program does not present any new significant information. It is incorrect to say that our response to Uppdrag Granskning was the first time we disclosed that all cathode material is imported. We communicated our decision to pause cathode material production in a press release on September 9 last year, and the sourcing of cathode material has been detailed in various reports, including our annual reports from 2021 to 2023.”
Emma Nehrenheim, President of Northvolt’s battery systems and materials division, confirmed that the company initially aimed to produce its own cathode material but had to adjust its strategy due to financial constraints. Speaking to SVT, she stated: “Due to our operational and financial situation, we unfortunately had to make short- and medium-term reprioritizations. This affects our integrated model and sustainability goals, delaying certain targets related to recycled material and carbon footprint reduction.”
Despite these setbacks, Nehrenheim emphasized that Northvolt remains committed to its long-term vision. “This is not the path we originally intended, but we will work towards restoring our initial strategy, either independently or through partnerships,” she said. “In the meantime, we are actively working to improve transparency, increase the share of renewable energy, and integrate more recycled materials into the cathode material supply chain.”
While Northvolt maintains that its products still offer a lower carbon footprint than many competitors, its admission underscores the challenges Europe faces in reducing reliance on Chinese battery supply chains.
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