EU support could help Northvolt attract new owner, Sweden says
By Kate Abnett
BRUSSELS (Reuters) -The European Union should amend its clean-tech funding rules to allow bankrupt Swedish battery cell maker Northvolt to access support that could help it attract a potential new owner, Sweden’s deputy prime minister told Reuters on Monday.
Electric vehicle battery maker Northvolt said last week it had filed for bankruptcy in Sweden, marking one of the country’s largest corporate failures and upending Europe’s best hope of developing a rival to challenge China.
Ebba Busch said she had urged Brussels to expand the recipients able to receive EU funding for clean tech projects, so that existing battery makers, such as Northvolt, would be eligible.
Busch was speaking after a meeting with European Commission industry chief Stephane Sejourne in Brussels, where they discussed the matter.
Busch said in an interview,
It’s time to go from words to action and actually decide on that money during this spring,
Busch said such support could be “crucial” in helping to ensure Northvolt “could be a company that survives this tough insolvency period with a new incoming owner.A new incoming owner is also looking to see what will the terms and the possibilities of a viable competitive situation be for Northvolt in the European market.”
The European Commission did not immediately respond to a request for comment.
The Commission last month said it would commit 6 billion euros ($6.55 billion) for clean industries, including battery manufacturing, from the EU Innovation Fund – a pot of money currently earmarked for highly innovative projects, rather than existing technologies.
Busch said, referring to Europe’s heavy reliance on imports of key green technologies from China,
If the EU Commission keeps on only supporting newcomers within the battery sector, then the ‘clean industrial deal’ on European soil will be in the hands of China,
($1 = 0.9158 euros)
(Reporting by Kate Abnett; additional reporting by Johan Ahlander; editing by GV De Clercq and Sharon Singleton)
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