Title: Biased Bucks: The Northvolt Gamble

*(Inspired by a Guardian report on 1 Oct. 24 ?- Huge losses’: Sweden fears for future of batterymaker Northvolt – as well as by my – Jude S. Ngu’Ewodo - ?book?Climate Crisis Unmasked Unraveling the web of Betrayal and Greed, Chapter 8:?Investment Scams: Exploitation Unveiled, Trapping Innocence In The Web Of Climate Deception

The night was quiet in Skellefte?, a small city near the Arctic Circle, where once, hope shimmered in the glow of the future—a future that would supposedly see Europe's first homegrown battery gigafactory powering the green industrial revolution. It was a time when promises flowed as easily as the billions of dollars that Northvolt attracted from global investors and European politicians alike.

Just three years earlier, the then-Swedish prime minister had stood beaming before a room of reporters, calling Northvolt “the future” in the fight against the climate crisis. Across Europe, political leaders echoed his optimism. In the corridors of power in Germany, Chancellor Olaf Scholz and his right-hand man, Economics Minister Robert Habeck, were riding the wave of green dreams. They saw Northvolt as not just a savior for Europe’s environmental goals, but a beacon of economic renaissance. Germany backed the project with nearly €1 billion in subsidies, an enormous bet on the future of battery production that would supposedly save Europe from its reliance on Chinese imports. But as the events of 2024 unfolded, it became clear that this high-stakes gamble was spiraling into a financial thriller—a financial Waterloo.

The Rise: A Charismatic Fantasy

It all started with a vision: build the world's greenest battery and position Europe as the center of the electric vehicle (EV) revolution. Founded in 2016, Northvolt promised to deliver batteries that would power everything from Teslas to city buses, all while aligning with the EU’s aggressive climate targets. The dream attracted major auto industry players like Volkswagen, BMW, and Volvo, who rushed to secure contracts worth billions of dollars with Northvolt, eager to reduce their dependency on fossil fuels and Chinese-made batteries.

In the early years, everything seemed to go according to plan. In Sweden, workers coined a new term for themselves—“Northvoltare”—as they donned white coveralls and hard hats to work on this behemoth project in Skellefte?. The media praised them as modern-day pioneers, hammering away to build Europe’s new industrial heart.

But beneath this glossy narrative, cracks were already starting to show.

The Unraveling: A Billion-Euro Gamble

From the outside, it looked like a sure thing—politicians loved it, companies placed massive orders, and green-energy advocates hailed it as the blueprint for Europe’s future. But what investors, and more importantly politicians, overlooked was just how fragile that future really was.

Investment due diligence is no game, and yet politicians, including Scholz and Habeck, seemed to treat it like one. Perhaps they were caught up in the fantasy spun by charismatic CEOs with slick PowerPoints. Or maybe it was the lure of securing political points by aligning themselves with the climate cause. Either way, when the German government approved a staggering €902 million in subsidies for Northvolt’s new factory in Heide, Schleswig-Holstein, alarm bells should have gone off. As explored in my – Jude S. Ngu’Ewodo #Nguewodo #JudeSnguewodo #ClimateCrisisUnmasked - ?book?Climate Crisis Unmasked Unraveling the web of Betrayal and Greed, Chapter 8:?Investment Scams: Exploitation Unveiled, Trapping Innocence In The Web Of Climate Deception the warning signs were clear.

Scholz, a labor lawyer with a history in union negotiations, and Habeck, a former children's book author turned green visionary, didn’t have the financial acumen to assess the viability of a complex, capital-intensive startup. It was a classic case of political overreach—a situation where the politicians overpromised and underdelivered, much like Northvolt itself.

The cracks widened in mid-2024 when BMW abruptly canceled a $2.5 billion contract with Northvolt. This was followed by the company announcing 1,600 job cuts, a freeze on its flagship Skellefte? factory expansion, and rumors of looming bankruptcy. Northvolt’s rapid descent exposed what any seasoned investor would have seen coming—this wasn’t a safe bet; it was a house of cards.

The Fall: The Reckoning of Amateur Investors

By late 2024, Northvolt’s fate was hanging by a thread. As the company bled cash, it became clear that the German taxpayer was at risk of footing the bill for a project that was now unlikely to deliver on its promises. The €902 million subsidy, part of the EU’s Green Deal, was meant to accelerate the transition to a climate-neutral economy. Instead, it was becoming a textbook case of political miscalculation.

This is where the drama took a darker turn—one with echoes of political thrillers that expose the amateurism, and/or corruption(?) and recklessness of those who play with public funds like poker chips. In? my – Jude S. Ngu’Ewodo #Nguewodo #JudeSnguewodo #ClimateCrisisUnmasked - ?book?Climate Crisis Unmasked Unraveling the web of Betrayal and Greed, Chapter 8.3 Unicorns, Mermaids, And The Holy Grail: How Corrupt Politicians Discovered Clean Coal, Clean Atom, and Clean Fuel (In Their Imaginations) and ?Chapter 8.4 Biased Bucks: National Subsidies – Wealthy’s Delight, Inequality’s Fright, I lay out how politicians, motivated by quick wins and public perception, often dive headfirst into areas they know nothing about. Their expertise lies in securing votes, not in conducting complex investment due diligence. In the case of Northvolt, Scholz and Habeck gambled German taxpayer money on a green dream that, in the hands of professional investors, would have been vetted far more carefully.

The financial reckoning seemed inevitable. Northvolt’s mounting debt—more than 60 billion kronor (€4 billion)—its inability to ramp up production, and reports of dangerous workplace conditions all pointed to one conclusion: this was not the green success story the politicians had sold to their voters. Sweden had no history in large-scale battery production, and even the most ambitious industrialists were starting to recognize the fundamental flaws in Northvolt’s business model.

As the Guardian reported on 1.10.24, rumors of bankruptcy swirled, and with them came the realization that the billions of euros in public funds sunk into Northvolt might never be recovered. Northvolt was supposed to save Europe’s green revolution, but instead, it was turning into a graveyard of political credibility and public trust.

The Waterloo: Political Fallout

For Scholz and Habeck, Northvolt’s collapse could be their political Waterloo. Already, whispers of scandal were circulating through Berlin. How could two high-ranking officials, entrusted with safeguarding the nation’s future, throw nearly a billion euros into a company that was, in hindsight, so clearly on shaky ground? The answer lay in one of the oldest political biases: the desire for a quick win.

Scholz, the careful labor lawyer, had staked his political capital on Northvolt becoming Germany’s entry into the green industrial revolution. Habeck, the children's book author turned green crusader, had built his public image on the idea that environmental innovation was the key to Germany’s future. Both men failed to recognize that the real expertise in this game wasn’t theirs to wield.

The Guardian article crystallized a truth that investors had long understood: the politicians had no business making investment decisions. In the financial markets, where every dollar is scrutinized and every decision can mean the difference between profit and disaster, Northvolt would have been seen for what it was—an overhyped, underperforming company. In the political arena, however, it was a symbol of hope, one that ultimately failed.

Epilogue: The True Cost of Political Hubris

The collapse of Northvolt, and the resulting political fallout, offers a cautionary tale for any politician eager to play investor. Complex financial decisions require careful analysis, expertise, and a deep understanding of risk—qualities that are often in short supply in political offices. The Northvolt case will go down in history as a vivid example of how politicians, seduced by the promise of green technology, lost sight of the fundamentals of sound investment.

In? my – Jude S. Ngu’Ewodo #Nguewodo #JudeSnguewodo #ClimateCrisisUnmasked - ?book?Climate Crisis Unmasked Unraveling the web of Betrayal and Greed, ?I explore how the line between governance and reckless financial speculation is easily blurred when politicians treat public money as though it were their own. The Northvolt saga is a reminder that in the world of investments, there is no room for amateurs. And when politicians try to play investor, it’s the taxpayer who often pays the price.

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Discover more inspiring climate stories in "Climate Crisis Unmasked: Unraveling the Web of Betrayal and Greed" by Jude S. Ngu' Ewodo. This compelling book sheds light on the complex forces behind the global climate crisis and the powerful movements pushing for change.

Available in print here https://www.amazon.com/Climate-Crisis-Unmasked-Unraveling-Betrayal-ebook/dp/B0CW1BRK47/ref=tmm_kin_swatch_0?_encoding=UTF8&qid=&sr=

and as an Ebook here https://books2read.com/u/3yXKMv

Jude S. Ngu'Ewodo

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