Struggling battery maker Northvolt to shut down energy storage manufacturing in Poland

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Notes from Poland is run by a small editorial team and is published by an independent, non-profit foundation that is funded through donations from our readers. We cannot do what we do without your support.

Swedish battery maker Northvolt has announced the closure of its energy storage development and production facility in Poland after the company filed for bankruptcy last week.

The firm, which specialises in producing batteries for electric vehicles, will now seek to sell both of its factories in the Polish city of Gdańsk. One of them, which only opened last year, had been planned as Europe’s largest factory for energy storage systems when it was announced in 2021.

“We have unfortunately made the difficult decision to end the development and production of energy storage,” said Robert Chryc-Gawrychowski, CEO of Northvolt Poland. “Despite our efforts, it has not been possible to find an investor for this part of the business.”

As a result, the firm’s new factory at Andruszkiewicza Street in Gdańsk will be closed, said Chryc-Gawrychowski. Meanwhile, the company is also in advanced talks to sell its industrial battery systems business, including the production site on Elbląska Street in Gdańsk, which has operated for six years.

“The most important task now is to support the employees affected by this decision,” said Chryc-Gawrychowski. Northvolt employs 281 people at its factories in Poland.

However, the firm intends to retain its business scaling centre in Gdańsk, which provides human resources, IT, finance, purchasing and logistics support, and employs 64 people.

The announcement came after Northvolt revealed that it has voluntarily filed for Chapter 11 bankruptcy protection in the United States. This filing will allow the company to restructure its debt, secure new funding sources, and adapt its business model to evolving customer needs.

Peter Carlsson, who co-founded Northvolt in 2016, has also stepped down as CEO and will transition to an advisory role while remaining on the board.

Northvolt was once hailed as Europe’s best chance to establish a homegrown electric-vehicle battery powerhouse. However, electric vehicle demand has grown more slowly than many in the industry had anticipated, putting the European car industry under pressure.

Poland has itself became Europe’s largest producer of lithium-ion batteries, and the second largest in the world, behind only China.

The country is home to Europe’s biggest battery manufacturing facility – the LG Energy Solution plant in Wrocław – which, according to the International Energy Agency (IEA), accounts for half of the total battery manufacturing capacity in Europe.

Northvolt’s struggles began in June when BMW cancelled a €2 billion contract. Already grappling with delays in meeting production targets, Northvolt lost a critical revenue stream and failed to secure equity funding, reported Bloomberg.

Volkswagen, a key investor holding a 23% stake, was initially prepared to step in but withdrew as it faced its own crisis with stagnant electric vehicle sales and factory closures.

Notes from Poland is run by a small editorial team and published by an independent, non-profit foundation that is funded through donations from our readers. We cannot do what we do without your support.

Main image credit: Northvolt (press materials)

Alicja Ptak

Alicja Ptak is senior editor at Notes from Poland and a multimedia journalist. She previously worked for Reuters.