When it rains it pours

The problems for the Northvolt battery factory continue. Yesterday, the chairman of the municipal board in another place in Sweden, Borlange, was informed that the company's plans to build a factory for the manufacture of battery components have been scrapped. The municipality governed by the Social Democrats sold the land to the company at a reduced price with promises of future jobs, close to 1,000.

The company's founder and CEO Peter Carlsson informed the chairman of the municipal board Erik Nises that the company will sell all the land. According to Erik Nises, the company said the following quote "They have referred to the general financial situation and the company's position" unquote about the suspended construction and the sale of the land.

In addition to this, it has now also emerged that the company is preparing for another capital injection in the form of a new issue after last year's losses of billions. Despite the company's billion-dollar losses, Peter Carlsson sold off part of his holding in the company to a value of $17,658,000 as recently as the end of last year.

Beyond the obvious problems with manufacturing itself, there is a possible additional problem in the future for the company. Since they manufacture batteries for external customers and development is very fast, there are no guarantees that the technology has not changed when and if Northvolt gets its manufacturing in order.

This makes them more vulnerable than, for example, Telsa, which manufactures its own batteries and thus has greater control over any technology changes.