Northvolt, Europe’s great hope in the global battery wars, began life as a start-up focused on the continent. Now the Swedish group, backed by Volkswagen, BMW and Goldman Sachs, is looking to the US to expand production.
The reason for the pivot is the Inflation Reduction Act (IRA). The US’s flagship green technology legislation, signed into law in August, would subsidise a factory in America by about $600mn-$800mn, according to Northvolt. That compares to €155mn in incentives on the table from Germany.
The IRA “is moving momentum a lot from Europe to the US”, Northvolt chief executive Peter Carlsson told the Financial Times, adding that it was not only affecting European companies. “There are new Asian players who are reallocating their strategic plans and investments to North America,” he said.