Northvolt AB may slow its battery projects, the latest in a line of industry reassessments after the transition to electric cars cooled.
The Swedish manufacturer could push out the ramp-up timelines at its four major sites, Chief Executive Officer Peter Carlsson said Tuesday.
Aside from its most advanced plant in northern Sweden, the company is developing a factory with Volvo Car AB near Gothenburg and a site in Heide, Germany. It also committed to establishing a cell plant in Montreal.
Northvolt is examining its long-term strategy “both from a capital allocation point of view” as well as working out “realistic time plans for these projects between the customers,” Carlsson said in an interview.
Slower-than-expected demand for electric cars has prompted automakers to tweak model rollout plans and walk back ambitious goals for electrification. The ripple effect from these changes is starting to spread, with battery projects being pushed out and material suppliers Umicore SA and BASF SE canceling projects.
Additional hurdles have also gone up for Northvolt, Europe’s most advanced homegrown battery maker. Long-standing battery rivals in Asia, such as China’s BYD Co., have made strides on improving cheaper lithium-iron-phosphate batteries, broadening the types of vehicles they can be used for, undermining Europe’s own battery industry efforts.
Northvolt is also dealing with internal problems in the transition to full-scale production. Customers like Volkswagen AG’s Scania have complained of delivery delays, while BMW AG has backed out of a €2 billion (US$2.1 billion) battery order because of quality concerns, dealing a blow to the region’s efforts to establish an independent EV supply chain.
The manufacturer’s operating loss more than tripled to US$1.03 billion last year, Northvolt said, as the company dealt with “multiple challenges and setbacks” while seeking to scale up output at its Ett factory, Carlsson said in a statement.
Revenue slightly advanced to $128 million last year, up from $107 million.
Still, Northvolt on Tuesday said it’s targeting 25 per cent market share in Europe by the end of the decade, equivalent to about 150 gigawatt production capacity.
Last month, Bloomberg reported that plans for an initial public offering had been pushed to next year because of a challenging market for listings and the operational difficulties in scaling up production. The company is also losing its chairman, veteran industry leader Jim Hageman Snabe, at a critical time.
Snabe, who also chairs Siemens AG, won’t return after six months of sick leave. The Dane had been picked for the position in 2022, in an effort to build a more independent board with an industrial track record ahead of a potential IPO. Existing board member Tom Johnstone is taking over.
TORONTO – At least one competition expert says the record $38.9 million fine against Cineplex Inc. is bound to encourage more action against companies engaged in a deceptive practice known as drip pricing.
The theatre operator was found late Monday to have engaged in the practice, where customers are drawn into a purchase without full disclosure of the final cost.
The Competition Bureau’s case against Cineplex related to a $1.50 charge many customers were forced to pay when purchasing movie tickets online.
Vass Bednar says these types of fees are common across many sectors, providing plenty of fodder for potential future cases that could delve into the pricing of airline, bus and concert tickets.
The executive director of McMaster University’s master of public policy program says the Competition Bureau’s success with the Cineplex case shows there’s no issue too small for the watchdog to go after.
Cineplex maintains it has always been upfront about its $1.50 online booking fees and has said it will appeal the fine levied by the Competition Tribunal.
This report by The Canadian Press was first published Sept. 24, 2024.
MONTREAL – The Caisse de dépôt et placement du Québec has signed a deal with Brookfield Asset Management and its institutional partners to buy their 25 per cent stake in British power company First Hydro Co.
Financial terms of the deal by the Quebec investment manager were not immediately available.
First Hydro is responsible for the management and operation of two power plants in Wales.
Emmanuel Jaclot, CDPQ’s executive vice-president and head of infrastructure, says the investment marks the fund’s first foray into pumped hydro storage.
French utility Engie is the majority shareholder in First Hydro with the remaining 75 per cent stake.
The deal is expected to close by the end of 2024.
This report by The Canadian Press was first published Sept. 24, 2024.
Companies in this story: (TSX:BAM)
Note to readers: This is a corrected story. The headline in an earlier version incorrectly stated the country where First Hydro is located.
TORONTO – Brookfield Renewable and its institutional partners have signed an agreement to sell its Saeta Yield renewable energy business in Europe to the UAE’s Masdar in a deal valued at US$1.4 billion.
Saeta is an independent developer, owner and operator of renewable power assets in Spain and Portugal.
Masdar will acquire a portfolio of 745 megawatts of predominantly wind assets and a development pipeline of about 1.6 gigawatts worth of projects.
The deal excludes a regulated portfolio of 350 megawatts of solar power assets, which Brookfield will keep and continue to operate.
Mohamed Jameel Al Ramahi, chief executive officer at Masdar, says Saeta is a perfect complement to the company’s portfolio in Europe.
Masdar was established in 2006 and has developed and invested in projects in over 40 countries with a combined capacity of over 20 gigawatts.
This report by The Canadian Press was first published Sept. 24, 2024.
