Skellefteå Municipality comments on today's announcement from Northvolt's bankruptcy administrator

Northvolt's bankruptcy administrator has announced that operations in Skellefteå will be further reduced. The decision will have serious consequences for the Swedish and European automotive industry, while even more residents of Skellefteå will be affected by this and end up in an uncertain situation.

- This is not just about a factory. It is about the future of thousands of people, about Sweden's green industrial credibility and about the EU's ability to stand on its own two feet in the new geopolitical energy landscape where batteries are a strategic infrastructure, says Lorents Burman, Chairman of the Municipal Executive Board.

Europe's automotive industry is facing a crucial stage and therefore the European Commission has received a concrete action plan with measures to decide on. The support package is called the Battery Booster and is intended to strengthen the EU's strategic self-sufficiency in battery production and reduce the risks in the first critical years for new cell manufacturers. The proposed support package is also intended to accelerate the path to self-financed production and global competitiveness. The package proposes investment support and volume-based support for production. In total, the support package is proposed to cover 7-8 billion euros. The aim of this is for the support to contribute to the EU's goal of covering 40 percent of demand with domestic production by 2030.

- Today, all of Europe is aware that it takes time to build a stable value chain. If the state can guarantee temporary bridge financing for a few months, the factory that has come the furthest in European development can continue to manufacture batteries, which are such an important part of the electrification of society. Sweden currently has the EU's most advanced production capacity with operations already in operation in Skellefteå. Quickly activating an EU program is a crucial prerequisite for continuing to be able to build up battery cell production, and not only in Sweden but in several EU countries, says Lorents Burman.

Skellefteå is expected to continue to slow down when it comes to population growth, which has returned to a normal level. This after having been at a record high level for a long time. When it comes to future investments, these are adjusted based on current conditions.

- Something we need to remember is that the establishment of the battery factory in Skellefteå and Sweden has not only generated costs but also large tax revenues for the state. We have not had time to do any detailed analyses

ourselves, but an overall estimate states that the Swedish state may have earned around SEK 10 billion just from the rise and fall of the business and the side effects they give. As for Skellefteå Municipality, the tax revenues are SEK 800 million. This also concerns residents who have not used public services very much, says Kristina Sundin Jonsson, municipal director.

Skellefteå Municipality's crisis organization has been activated since the notice came in September last year and several efforts have been made to help those affected. This work continued when the bankruptcy notice was issued in March. Almost 4,000 people have been affected during this entire time and local companies have also been affected by what has been described as the largest bankruptcy in Swedish modern history.

- This is yet another very sad piece of news and now even more residents will have an uncertain time ahead of them. At the same time, I am very hopeful that the bankruptcy administrator will find a new owner for the business, as it has all the strategic continuations to be able to become a successful factory. We also know that the EU sees this as a strategic product and that we are well aware of the package that is being developed within the EU. We are also helping in the work of getting a new owner in place, as it is of the highest priority. We still have some time, although time is running out. I understand that many in Skellefteå feel sadness on a day like this, at the same time that we must look up and see everything that has been achieved. Skellefteå's development will continue, says Kristina Sundin Jonsson.

For more information, contact:
Lorens Burman, Chairman of the Municipal Board, +46 70-243 07 00
Kristina Sundin Jonsson, Municipal Director, +46 70-608 89 69