The Ultimate Electric Car Showdown: Will Porsche and Audi’s Dreams Be Derailed?

The collapse of the electric vehicle battery maker Northvolt has dealt a significant blow to Europe’s ambitions to build its own battery industry.

Northvolt’s cessation will increase European carmakers’ reliance on Chinese battery suppliers, raising concerns about supply chain security and dependence on foreign technology. Additionally, the lack of domestic battery manufacturers may slow down Europe’s transition from internal combustion engines to electric vehicles.

Currently, major European car brands such as Porsche and Audi may have to delay the launch or production of automobiles due to a shortage of battery supplies. Specifically, the Porsche 718 and A6 e-tron models are both dependent on Northvolt’s batteries. 

These carmakers may now have to turn to new battery suppliers such as LG, BYD, or CATL.

Northvolt’s financial troubles stem from missing production targets, resulting in delayed major orders and significant financial losses. Data shows that during the first nine months of 2023, the factory’s output only reached five-thousandths of its projected capacity.

Meanwhile, the market for electric vehicle batteries is becoming increasingly competitive, particularly with the presence of Chinese manufacturers like CATL and BYD – companies that benefit from advantages in scale, cost, and government support.

The Swedish and German governments have declined to provide further financial aid to Northvolt, despite internal discussions about the company’s strategic importance to Europe. 

TH (Tuoitrethudo)