Resurrection, renewal or rebuild?
Northvolt AB is a Swedish battery developer and manufacturer. Founded in 2015 by two former Tesla executives, it built its first manufacturing plant in Sweden in 2021 and has plans for five others in Europe and North America. The company filed for protection under Chapter 11 of the United States Bankruptcy Code on November 21, 2024.[5] (From Wikipedia, the free encyclopedia)
That bad news was a shock to shareholders, creditors and investors, including German and Canadian governments, who invested in the “leading battery maker outside of China” to reduce the threat of Chinese domination of the industry and to support the transition to green energy.
The interim chairman of Northvolt explains, “This is not a retreat but a recalibration.” They’re now trying to persuade shareholders and creditors to invest another $1.3 billion in the rescue and resuscitation. He says, “The restructuring underscores our resilience, positioning Northvolt as a beacon for European industry and a vital driver of the green transition.” The inspiring rhetoric continues.
What’s the real excuse for failure and the billions of dollars lost?
In my opinion, it’s bad decision-making by incompetent politicians and naïve investors blindly buying into the self-serving pitch of ambitious corporate leadership, and the public pressure to solve global issues without thoughtful analysis of the planned solutions and mitigation of the risks.
Be better. Do Better. Be an Enlightened Entrepreneur.
Del Chatterson, your Uncle Ralph
Learn more about Enlightened Entrepreneurship at: LearningEntrepreneurship.com
Read more of Uncle Ralph's advice for Entrepreneurs in Don't Do It the Hard Way & The Complete Do-It-Yourself Guide to Business Plans - 2020 Editions.
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