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

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

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.

“How are we not taking this more seriously? The European car industry is the heartland of European industry’s supposed prowess,” said one long-standing investor in Northvolt after the collapse into US bankruptcy last week of Europe’s biggest battery hope. “The depth of the crisis for the European car industry is almost unlimited. It’s incredibly grim.”

Brussels took its first steps to establish a battery supply chain across Europe in 2017, with Northvolt at the heart of its ambitions. The bloc has since increased its share of the global battery market from 3 per cent to 17 per cent with annual turnover of €81bn in 2023 after spending more than €6bn of the EU budget to support cross-border battery projects and research and innovation.

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But in terms of EV batteries, Asian participants including CATL, BYD, and LG Energy Solution and SK On of South Korea, control about 70 per cent of the global market. Many of the 30 gigafactory projects in Europe have also been designed and built with the help of Chinese and Korean companies.

Northvolt chief executive Peter Carlsson. The Swedish group was at the heart of Brussels’ ambitions to establish a battery supply chain across Europe © Charlie Bibby/FT
Robin Zeng
CATL chief executive Robin Zeng said European battery makers had the ‘wrong design . . . they have a wrong process . . . and they have the wrong equipment’ © Lam Yik/Bloomberg

As the EU’s ambitions have faltered, the struggles of Northvolt have come to embody the challenge the continent faces. The bloc wants to continue encouraging costly investments in the clean technologies needed to meet its ambitious climate goals, while at the same time stemming the wave of plant closures and job cuts that are already spreading across the automotive sector and heavy industries. 

“It’s fair to say we’re at a pivotal moment right now,” said Wouter IJzermans, executive director at the Batteries European Partnership Association. 

People involved in the Northvolt saga said options were narrowing for Europe to address its dependence on China and other parts of Asia for the technology and materials that will be critical as the automotive industry transitions to electric vehicles. 

Efforts are still being made by other start-ups such as France’s Verkor and Volkswagen’s battery business PowerCo, but they are facing either diminished ambitions or tougher financing prospects.

PowerCo is considering building just one out of the two production lines previously planned for its plant in Salzgitter in Germany due to slowing market demand. 

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Verkor counts Renault as its main client and recently finalised a new €1.3bn financing round to back the construction of a plant in the northern French port city of Dunkirk. But its chief executive Benoit Lemaignan said financing talks were arduous on the back of Northvolt’s woes and the slowdown in the growth of electric vehicle sales this year.

A mural of a VW electric vehicle at the construction site of the Volkswagen AG SalzGiga fuel cell gigafactory, operated by PowerCo, in Salzgitter, Germany in 2023
The Volkswagen fuel cell gigafactory under construction in Salzgitter, Germany, last year © Krisztian Bocsi/Bloomberg

“There was a whole fresh round of audit work and validation of the set-up, our chemistry, the machines and all the equipment,” Lemaignan said. “It’s not something automatic, to find financing today. It’s an issue that goes well beyond Verkor, and affects the financing of all of the energy and climate transition industries.” 

In France, there is also Automotive Cells Company, a venture backed by carmakers Stellantis and Mercedes-Benz, and oil major TotalEnergies, which started producing batteries in 2023. But this year ACC paused plans to expand further with plants in Germany and Italy as it considered switching to a lower-cost form of battery technology and adjusted to a slower EV adoption rate. 

“There are expansion phases and crisis phases, if you draw a parallel with other industries. Perhaps we’re living through the first big challenges for Europe’s battery industry. But there will be factories and there will be clients, we’re seeing that more and more,” Lemaignan said.

Consequences from Northvolt’s US bankruptcy filing are already being felt, with carmakers being forced once again to turn to their Asian suppliers to reduce their exposure to its collapse. 

Germany’s Porsche has never confirmed its relationship with Northvolt, but a person familiar with the agreement between the two companies said the Swedish start-up was contracted to make the batteries for the all-electric Porsche 718, scheduled for launch next year.

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As Northvolt’s troubles deepened, the sports-car maker began looking for alternative suppliers. While Porsche also buys batteries from South Korea’s Samsung SDI, LGES and China’s CATL, the person added that diversification was a complicated task at relatively short notice.

A cell assembly worker in the dry area of a production line at the Automotive Cells Company (ACC) gigafactory in Douvrin, France
France’s ACC, a venture backed by Stellantis, Mercedes-Benz and TotalEnergies, started producing batteries in 2023 © Nathan Laine/Bloomberg

Northvolt’s demise means the battle for dominance of the European market is likely to play out between Asian battery makers. 

LGES and SK On both have European plants, in Poland and Hungary respectively, while CATL has a factory in Germany and a second site in Hungary due to begin production next year.

But Tim Bush, a Seoul-based battery analyst at UBS, said there was little prospect at present that the Asian battery makers would be able to help the EU to meet its target for 90 per cent of the continent’s EV batteries to be produced locally by 2030.

Bush noted that Korean battery makers were already paring back their investments in Europe, having invested billions of dollars in plants in North America that have been running at low utilisation rates because of lower than expected consumer demand for EVs.

Potential Chinese battery investments on the continent were also likely to be complicated by the ongoing trade dispute between Brussels and Beijing over EU tariffs on Chinese electric vehicles, he added.

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“The Koreans are not expanding, the Chinese have suspended construction and Europe’s new entrants are dropping like flies,” said Bush.

Against such obstacles, the European Commission is weighing plans to require Chinese developers to have plants and bring their intellectual property to Europe in order to access EU subsidies, the FT has previously reported. 

With European start-ups still behind in their ability to manufacture batteries at scale, industry executives say the only solution may be to continue their reliance on Asian participants until homegrown companies can absorb technology knowhow on battery chemistry, mass production and equipment manufacturing.

“We need to find a deal with China because we won’t be able to compete . . . without the support of the Chinese companies that control the mining industry, chemicals, refining and their capacity and competence,” Luca De Meo, Renault’s chief executive, told reporters last month.

But the dilemma is how long Europe needs to wait for the technology transfers to complete, and whether it would already have lost the race by then.

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“If you really zoom out, what does Europe want to be? I really question whether Europe wants to give up yet another industry like it did with solar panels. Europe is not a leader in AI. I want my kids to grow up somewhere where there are a lot of jobs,” said a Northvolt executive.

Reporting by Kana Inagaki and Harriet Agnew in London, Patricia Nilsson in Frankfurt, Sarah White in Paris, Alice Hancock in Brussels, Christian Davies in Seoul, and Richard Milne in Oslo

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Co-leader of Germany’s far-right AfD calls for mass deportations

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Co-leader of Germany’s far-right AfD calls for mass deportations

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The co-leader of the far-right Alternative for Germany has called for mass deportations of immigrants as the party launched its programme for next month’s nationwide elections.

In a fiery speech to supporters in the small town of Riesa in Saxony, east Germany, Alice Weidel said that under the AfD — which is second in the polls with a record vote share of around 20 per cent — Germany would witness “repatriations on a large scale”.

Weidel, AfD’s candidate for chancellor in the elections, used the controversial term “remigration” to describe the policy.

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The word was coined by right-wing Austrian ideologue Martin Sellner, who defines “remigration” as forcibly removing immigrants who break the law or “refuse to integrate”, regardless of their citizenship status — an idea that critics say is akin to ethnic cleansing.

On Saturday Weidel said: “I have to tell you quite honestly: if it’s called remigration, then it’s called remigration.”

She was met with loud applause from party delegates who also repeatedly shouted “Alice für Deutschland” — a play on the forbidden Nazi-era slogan “Alles für Deutschland”, meaning “everything for Germany”.

Weidel, a former Goldman Sachs analyst, has positioned herself as the more presentable face of a party that includes ultraradicals who have been classified as right-wing extremists by Germany’s domestic intelligence agency.

Earlier this week in a joint appearance on X with Elon Musk, Weidel used the unprecedented public platform to argue that the AfD — which also promotes normalisation of relations with Moscow and the tearing down of wind turbines — had become a mainstream political force.

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However, it has little chance of coming to power in the upcoming elections because all of Germany’s other major parties have ruled out going into coalition with it.

Weidel’s embrace of remigration was seen by some in the party as a nod to Björn Höcke, the flag-bearer of the radical right who led AfD to a historic first-place finish in regional elections in the east German state of Thuringia in September.

“It is a concession to Björn Höcke,” said Kay Gottschalk, a member of the German Bundestag who belongs to the more moderate flank of the party. “It is a word, of course. I would express it in another way — sending them back — but that is what delegates want.”

Weidel also used her speech to repeat her call for the Nord Stream gas pipeline from Russia to Germany to be brought back into operation, to bring back nuclear power and to rail against gender studies programmes.

The party gathering was met with large-scale protests. Around 10,000 anti-AfD demonstrators turned up and police put Riesa, a town of 30,000 people, under lockdown, delaying the start of the conference by two hours.

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The architecturally significant houses destroyed in L.A.'s fires

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The architecturally significant houses destroyed in L.A.'s fires

Los Angeles has Frank Gehry’s glorious Walt Disney Concert Hall, the space-age wonder of the LAX Theme Building and the stack-of-vinyl needle drop that is the Capitol Records building. For some design geeks, however, the heart and soul of L.A.’s architecture resides not just in its museums and office towers but also in its exalted, often otherworldly houses.

Those homes — especially those designed by Midcentury greats such as John Lautner, Richard Neutra, Ray Kappe, and Charles and Ray Eames — have been the obsession of those tracking the threats posed by firestorms laying waste to the wooded canyons and grassy hillsides that are the scenic backdrops for these residences.

Beloved landmarks by Frank Lloyd Wright, Rudolph Schindler and others stand outside of the immediate fire threat, but other notable houses have not been so lucky. Here’s a partial accounting of the confirmed losses:

Zane Grey Estate, Altadena: This home, with elements of Spanish, Mission and Mediterranean Revival design on 1.2 acres west of Lake Avenue, was built by architects Myron Hunt and Elmer Grey in 1907 for Chicago business machine manufacturer Arthur Herbert Woodward. At the time of its construction, it was called the first fire-proof structure in Altadena because it was built of reinforced concrete. (Woodward’s wife had lived through the devastating 1903 Iroquois Theater fire in Chicago, which erupted during a performance, killing more than 600.) The author Zane Grey bought the home in 1920, and he and his wife built a 3,500-square floor addition, including a library and office where Grey used to write. The 7,240-square-foot home was put on the market for about $4 million in 2020 and was listed as having eight bedrooms, four bathrooms, a commercial kitchen with a 15-foot ceiling, as well as a main kitchen, wine cellar and massive basement. Original cast-iron sconces, iron handrails and chandeliers remained in the house, which is on the National Register of Historic Places.

The Andrew McNally House: Architect Frederick L. Roehrig built this Queen Anne-style mansion for Rand McNally Publishing Co-founder and President Andrew McNally in 1887. McNally paid Roehrig $15,000 to design the mansion at East Mariposa Street and Santa Rosa Avenue, in an area that would soon be called Millionaire’s Row. The home had a three-story rotunda with views of the San Gabriel Mountains, and McNally kept a private railway car there. He had a gardener who nurtured the deodar cedars along a part of Santa Rosa that became known as Christmas Tree Lane.

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The Keeler House: In 1990 modernist architect Ray Kappe remodeled a home for jazz singer Anne Keeler and her then-husband, Gordon Melcher. The 4,142-square-foot cantilevered post-and-beam structure, nestled in a woodsy hillside with canyon and coastline views, went on the market for $12 million in April. With four bedrooms and three bathrooms, the house had walls and floors of concrete complemented by a palette of redwood, teak, fir and glass block. Kappe founded the Southern California Institute of Architecture in 1972 and died in 2019 at age 92.

Janes Village: This cluster of historic English cottages was built between 1924 and 1926 by architect Elisha P. Janes (known professionally as E.P. Janes). Janes built at least 270 English- and Spanish-style cottages in the area. These were mostly single-story stucco-finished homes with six rooms, arranged in one of four floor plans and priced to be accessible to the middle class.

Gregory Ain’s Park Planned homes: Designed in 1948 by Ain with the help of the era’s premier modernist landscape architect, Garrett Eckbo, this strip of 28 Midcentury Modern homes was built as part of a social experiment conceived by a modernist architect focused on cost-effective, prefabricated design for working people. The area was created to look like a park with no front fences and continuous landscaping. The homes had side-facing garages and interior courtyards and glass walls, making them feel a bit like mini estates.

Bridges House: Anyone who has driven down Sunset Boulevard toward the coast will remember the Brutalist Bridges House, by architect Robert Bridges. After working on homes including his own, Bridges became a professor of real estate finance at the USC Marshall School of Business, where he is professor emeritus. His striking home was perched above the boulevard, its wood and glass cantilevered over a concrete base.

Will Rogers’ home: The actor’s ranch house, part of Will Rogers State Historic Park, was destroyed in the Palisades fire. In the 1920s Rogers built a 31-room residence with 11 bathrooms, a guesthouse, a golf course, stables and a corral on about 360 acres. In 1944 the compound and grounds became a park and museum after his widow, Betty, donated them to the state. “The Rogers family is devastated by the loss of the California ranch and the overwhelming loss of the community,” Jennifer Rogers-Etcheverry, the actor’s great-granddaughter, said in a statement. “Our hearts go out to all those neighbors who have lost their homes.”

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Tulsa Massacre Was a ‘Coordinated, Military-Style Attack,’ Federal Report Says

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Tulsa Massacre Was a ‘Coordinated, Military-Style Attack,’ Federal Report Says

The Tulsa Race Massacre of 1921, in which a prosperous Black neighborhood in Oklahoma was destroyed and up to 300 people were killed, was not committed by an uncontrolled mob but was the result of “a coordinated, military-style attack” by white citizens, the Justice Department said in a report released Friday.

The report, stemming from an investigation announced in September, is the first time that the federal government has given an official, comprehensive account of the events of May 31 and June 1, 1921, in the Tulsa neighborhood of Greenwood. Although it formally concluded that, more than a century later, no person alive could be prosecuted, it underscored the brutality of the atrocities committed.

“The Tulsa Race Massacre stands out as a civil rights crime unique in its magnitude, barbarity, racist hostility and its utter annihilation of a thriving Black community,” Kristen Clarke, assistant attorney general for civil rights, said in a statement. “In 1921, white Tulsans murdered hundreds of residents of Greenwood, burned their homes and churches, looted their belongings and locked the survivors in internment camps.”

No one today could be held criminally responsible, she said, “but the historical reckoning for the massacre continues.”

The report’s legal findings noted that if contemporary civil rights laws were in effect in 1921, federal prosecutors could have pursued hate crime charges against both public officials and private citizens.

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Though considered one of the worst episodes of racial terror in U.S. history, the massacre was relatively unknown for decades: City officials buried the story, and few survivors talked about the massacre.

The Justice Department began its investigation under the Emmett Till Unsolved Civil Rights Crime Act, which allows the agency to examine such crimes resulting in death that occurred before 1980. Investigators spoke with survivors and their descendants, looked at firsthand accounts and examined an informal review by the Justice Department’s Bureau of Investigation, the precursor to the F.B.I. In that 1921 report, the agency asserted that the riot was not the result of “racial feeling,” and suggested that Black men were responsible for the massacre.

The new 123-page report corrects the record, while detailing the scale of destruction and its aftermath. The massacre began with an unfounded accusation. A young Black man, Dick Rowland, was being held in custody by local authorities after being accused of assaulting a young white woman.

According to the report, after a local newspaper sensationalized the story, an angry crowd gathered at the courthouse demanding that Mr. Rowland be lynched. The local sheriff asked Black men from Greenwood, including some who had recently returned from military service, to come to the courthouse to try to prevent the lynching. Other reports suggest the Black neighbors offered to help but were turned away by the sheriff.

The white mob viewed attempts to protect Mr. Rowland as “an unacceptable challenge to the social order,” the report said. The crowd grew and soon there was a confrontation. Hundreds of residents (some of whom had been drinking) were deputized by the Tulsa Police. Law enforcement officers helped organize these special deputies who, along with other residents, eventually descended on Greenwood, a neighborhood whose success inspired the name Black Wall Street.

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The report described the initial attack as “opportunistic,” but by daybreak on June 1, “a whistle blew, and the violence and arsons that had been chaotic became systematic.” According to the report, up to 10,000 white Tulsans participated in the attack, burning or looting 35 city blocks. It was so “systematic and coordinated that it transcended mere mob violence,” the report said.

In the aftermath, the survivors were left to rebuild their lives with little or no help from the city. The massacre’s impact, historians say, is still felt generations later.

In the years since the attack, survivors and their descendants and community activists have fought for justice. Most recently, a lawsuit seeking reparations filed on behalf of the last two known centenarian survivors was dismissed by Oklahoma justices in June. In recent years, Tulsa has excavated sections of a city cemetery in search of the graves of massacre victims. And in 2024, the city created a commission to study the harms of the atrocity and recommend solutions. The results are expected in the coming weeks.

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