The crisis-stricken and now-bankrupt battery manufacturer Northvolt is reportedly producing electric car batteries so flawed they cannot be used, according to newly uncovered documents.
Northvolt, which operates a factory in Skellefteå, Sweden, has been forced to discard brand-new batteries due to significant quality issues. Reuters uncovered this through internal documents detailing widespread production errors at the facility.
Falling Short of Ambitious Targets
The company has struggled to meet its ambitious production targets, causing severe operational and financial challenges.
Internal documents reveal that in week 45 of 2024, many batteries failed to meet quality standards and were deemed unfit for delivery to automakers. Northvolt had initially set a goal of producing 100,000 shipping-ready batteries per week by the end of 2024. However, during that week, only 20,000 batteries were produced.
In response, Northvolt has downplayed the target, stating it was merely an informal benchmark.
"The plan is currently under review based on the implementation of our strategic review, which affects how we operate our main facility, Northvolt One," the company told Reuters.
Scaling Back Operations
To cut costs, Northvolt has scaled back production.
One of its two production lines in Skellefteå has been temporarily shut down until December, and operations are now limited to weekdays. Additionally, the company has reduced its global workforce by approximately 20%.
Despite these setbacks, Northvolt continues to prioritize supplying key customers, including Scania and major car brands such as Audi and Porsche.
Northvolt’s production challenges have already had far-reaching consequences. Last summer, the company lost a contract with BMW worth approximately $2.12 billion
Sources close to the situation cite machine errors, inexperienced staff, and overly ambitious management goals as contributing factors to the company’s troubles.
Northvolt disputes the criticism, maintaining that both its equipment and workforce meet the industry's high standards. The company also claims significant progress has been made.
"It is a difficult industry. However, we have made great progress during the year. So much so that today we consistently produce high-performance battery cells for our customers week after week," Northvolt stated.
