This week, I listened to two excellent podcasts dissecting the saga of Northvolt: "Northvolt - Epitaph" by Redefining Energy and "What Went Wrong at Northvolt?" by Catalyst. Both offered deep insights into what went wrong, often with overlapping and complementary points. But here’s the kicker—they both missed a crucial piece of the puzzle. Let’s break it down.
What Went Wrong at Northvolt?
🏭 Too Fast, Too BigNorthvolt tried to do it all—developing new chemistries, building multiple factories, materials production, and recycling—all at once. Catalyst pointed fingers at investors for pushing a “go big or go home” mentality, while Redefining Energy laid the blame squarely on top management.
💔 Culture Eats StrategyCatalyst highlighted the Swedish consensus-driven work culture as a stumbling block, especially when managing a diverse workforce with many from Asian cultures. Meanwhile, Redefining Energy emphasized poor operational procedures, which led to accidents and communication breakdowns.
📍 Poor Location ChoiceThe North of Sweden might be scenic, but it’s not ideal for attracting top talent. The best R&D staff had to be based elsewhere, leading to a disconnect between R&D and manufacturing—a fatal flaw for any high-tech manufacturing operation.
🦓 The Zebra in the Clean RoomIn top-tier battery factories in Asia, electrode rolls are smooth as glass. Northvolt’s electrodes? Striped like a zebra. Poor quality control, coupled with subpar equipment and an unhealthy work culture, meant they couldn’t deliver quality products. And if you can’t make a quality product, it’s game over—unless you’re in consulting, of course.
What Both Podcasts Missed
🧪 It’s Execution, Not ChemistryBoth podcasts criticized Northvolt’s choice of NMC chemistry, calling it a strategic mistake. Here’s where I disagree. The problem wasn’t chemistry; it was execution.
If Northvolt had reached even half of its capacity with good-quality cells and then failed to hit cost targets, we could argue the chemistry choice was flawed. But demand for NMC is still strong and won’t disappear anytime soon.
Would initially choosing LFP have saved them? Doubtful. Without mastering manufacturing, they’d still end up in the same mess.
So, Bulldoze or Battery Factory?
Success in scaling isn’t about buzzwords or bold strategies—it’s about execution. Investors and industry leaders need to focus less on hype and more on the nuts and bolts of making things work. I’ve enjoyed listening to both podcasts and hope you will, too! What are your thoughts? Drop your comments below and follow me for more climate tech scale-up insights! And just in case you’ve wondered - I side with the bulldoze option.💣