Northvolt AB is reportedly in talks with Chinese battery makers including Contemporary Amperex Technology Ltd. (CATL), the world’s largest manufacturer of electric car batteries, reports the Swedish daily Today’s News.
Discussions on a possible partnership between the two companies were undertaken last summer with representatives meeting at CATL’s headquarters in Ningde, China, the European daily maintains.
The Chinese manufacturer dominates the battery market for electric vehicles, with nearly 40% of sales worldwide. It is immediately followed by BYD and Panasonic.
Reconciliation with Asia
In serious financial difficulties, Northvolt filed for Chapter 11 bankruptcy protection last week after a desperate attempt to obtain rescue financing failed.
Outgoing chief executive Peter Carlsson said earlier this month that possible tie-ups in Asia were part of discussions aimed at finding a solution to the company’s crisis.
Last week, Northvolt co-founder and North American CEO Paolo Cerruti also did not rule out bringing Chinese interests into the company’s capital. This even though the Swedish company has always defined itself, in Europe as in America, as a bulwark against the threat of Asian industrial giants.
“It’s a very delicate subject, and it’s a decision that we couldn’t make alone in our corner,” he declared in an interview with TVA. “If the opportunity presented itself, we would have to discuss it with them,” he added.
Major losses in sight
Last Thursday, the Minister of the Economy Christine Fréchette confirmed that the $470 million invested by Quebecers in Northvolt in Sweden risks going up in smoke as part of the restructuring measures undertaken by the company in the United States.
Meanwhile, the Chinese CATL is increasing its opportunities to increase its presence in Europe. According to Bloomberg, CATL is also in talks to establish battery recycling operations on the continent. It is already preparing to start cell production in Hungary.
Closer to home, CATL was a co-shareholder, among others, of the Quebec mine North Amercan Lithium (NAL), in Abitibi. This was before the latter passed into the hands of the Australian Sayonna Mining, in 2021, with the participation of Investissement Québec.
On the Shenzhen Stock Exchange, CATL shares have increased by 56.43% over the past year.
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