According to media reports, on March 17, Swedish Deputy Prime Minister Ebba Busch stated in an interview that the EU should amend its clean technology funding rules to enable the bankrupt Swedish battery manufacturer Northvolt to receive support, thereby attracting potential new buyers.
Electric vehicle battery manufacturer Northvolt announced last week that it had filed for bankruptcy in Sweden, marking one of the country's largest corporate failures. This development has also disrupted Europe's efforts to challenge China's dominance in the battery industry.
Busch said she has urged the EU to expand the scope of clean technology project funding so that existing battery manufacturers, such as Northvolt, can also receive financial support.
She made these remarks after meeting with the European Commission's industry chief, Stephane Sejourne, in Brussels, where they discussed this issue.
"It is time to move from words to action and make a real decision on the allocation of these funds this spring," Busch said in the interview.
Busch emphasized that such support could be "crucial" in helping Northvolt "survive this difficult bankruptcy period and continue to operate once a new owner takes over." She added, "Potential new buyers are also assessing Northvolt's competitive environment and feasibility conditions in the European market." The European Commission has not yet commented on the matter.
Last month, the European Commission announced a €6 billion ($6.55 billion) allocation from the EU Innovation Fund for the clean industry, including battery manufacturing. Currently, the fund primarily supports highly innovative projects rather than existing technologies.
"If the European Commission continues to support only new entrants in the battery industry, then European domestic orders will be taken by Chinese companies," Busch warned, referring to Europe's heavy reliance on Chinese imports in key green technologies.
