Northvolt's Financial Pivot: Selling Stockpiled Battery Materials

Northvolt, a key player in Europe's EV battery industry, is selling its stockpile of battery materials to stabilize finances after scaling back operations. This move marks a shift from its initial ambition to manage all production stages. The sale urgency arises from the materials' limited shelf-life.

Sweden's Northvolt is attempting to sell its stockpile of battery-making materials to bolster finances after scaling back on its initial ambitions, sources revealed on Thursday.

Once seen as Europe's primary contender for a homegrown EV battery manufacturer, Northvolt recently announced a 20% workforce reduction and a strategic shift to focus solely on large-scale battery cell production. This change follows a decision to halt cathode active material processing at its Swedish gigafactory, leaving nickel sulphate and lithium hydroxide stocks redundant.

The urgency in selling these materials is due to their short shelf-life, necessitating swift action. Likely buyers include firms within the battery supply chain, eager to acquire these raw materials amid ongoing industry supply challenges.

(With inputs from agencies.)