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The Northvolt dilemma: Can European EVs avoid relying on Asian batteries?

Governments, carmakers and investors must recraft the region’s strategy after the fall of the Swedish group

Two months before Northvolt filed for bankruptcy in the US, Robin Zeng, known as China’s “battery king”, had a quick but grim answer as to why European battery makers were struggling to make good products.

“They have a wrong design . . . they have a wrong process . . . and they have the wrong equipment. How can they scale up?” the chief executive of CATL told Nicolai Tangen, the head of Norway’s $1.8tn oil fund. “So almost all mistakes together.”

The bleak assessment from the world’s biggest electric vehicle battery manufacturer captures the scale of the failure for the industries behind the critical technology for Europe’s decarbonisation, leaving governments, companies and investors at a loss as to how to recraft the continent’s strategy to compete with China.

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