December 2024, Stockholm — Swedish battery manufacturer Northvolt is facing significant financial difficulties, with the company now facing the possibility of filing for Chapter 11 bankruptcy in the United States. According to Handelsblatt, the company’s inability to deliver battery cells as planned is likely to cause problems for car manufacturers, particularly Porsche and Audi, who may have to delay model launches due to the shortage of necessary battery cells.
Delivery Problems Impact Porsche and Audi
Industry sources and corporate circles report that several VW Group brands, notably Porsche, are facing delays in production as a result of Northvolt’s failure to deliver battery cells on time. Porsche, which had planned to use Northvolt’s cells for the successor to its 718 model, now faces the possibility of postponing the car’s release.
While Porsche’s electric models like the Taycan and Macan already use cells from other manufacturers (e.g., CATL’s cells from the Thuringia plant for the Macan), the 718 successor relied exclusively on Northvolt. The two-seater sports car has limited space for large battery packs, and Northvolt’s high energy density and low-volume cells were considered essential for the model. According to Handelsblatt, Porsche’s original plans did not include other battery suppliers.
Porsche has declined to comment on these reports, stating it cannot address situations in the supplier industry. Officially, Porsche continues to stick to its contract with Northvolt.
Audi Reassesses Its Contract with Northvolt
Audi’s situation is somewhat different. Citing company sources, Handelsblatt reports that Audi is currently evaluating whether its contract with Northvolt still makes sense. Audi had planned to source prismatic cells from Northvolt’s Skellefteå factory for its PPE (Premium Platform Electric) models, such as the Q6 e-tron and A6 e-tron.
Unlike Porsche’s 718 successor, Audi is planning to use multiple suppliers for its PPE platform, including CATL and LG Energy Solution, in addition to Northvolt. Currently, Audi’s A6 e-tron models are not affected by any delivery issues, and production at the Ingolstadt plant is not facing disruptions. However, in the long term, a shortage of batteries could arise if Northvolt fails to deliver the expected volumes.
Industry experts speculate that Audi may renegotiate with CATL and LGES, but such renegotiations could come at a higher cost than initially planned.
Northvolt’s Financial Crisis and Production Delays
Northvolt’s financial troubles are not solely due to production delays. The underutilization of its manufacturing capacity is costing the company money, and it has been unable to generate the expected revenue due to delayed deliveries. The worsening financial situation of Northvolt’s major shareholders has also hindered the necessary financing.
Earlier, BMW canceled a multi-billion-euro order because Northvolt could not deliver the agreed-upon quantities of cells on time. BMW had intended to use Northvolt’s prismatic cells for its current electric models but later switched to cylindrical cells for its new “Neue Klasse” series, making the delayed prismatic cells unnecessary.
Despite announcing that it would focus on ramping up production at the Skellefteå factory, it remains uncertain whether Northvolt will be able to fulfill its commitments, and even if it does, Porsche’s planned 718 successor may not debut as scheduled in 2025.
Conclusion: Future Challenges and Uncertainty
The ongoing delivery problems at Northvolt not only impact Porsche and Audi but also raise concerns about the company’s future in the battery market. As car manufacturers consider alternate suppliers or renegotiate contracts, Northvolt’s ability to resolve its production issues and meet delivery deadlines will be crucial to its survival in the increasingly competitive global battery market.
