It appears the incoming all-electric Porsche 718 Boxster and Cayman will be behind schedule as its crucial battery supplier, Swedish-based Northvolt, filed for bankruptcy just last week. According to EuroNews, the company went bust and filed for Chapter 11 in the United States after having only $30 million left in cash reserves along with a whopping $5.84 billion in debt to the European Union and other investors.
Although not officially confirmed by Porsche, the German automaker’s parent company, Volkswagen AG, reportedly contracted the battery manufacturer to supply its battery packs for the new electrified 718 models. Now that they went bankrupt, it’s reportedly delayed the arrival of the model, as EV outlet, electrek, reports. The new electric 718 models were scheduled to launch sometime next year, but that isn’t likely to happen with this latest supplier delay. Northvolt’s batteries were destined to supply electrons for the new 800-volt architecture underpinning the models, resulting in a range of around 250 miles and a fast-charging rate of around 270 kilowatts per hour.
Northvolt Owes The European Union A Ton Of Money
The European Union was largely responsible for bankrolling Northvolt’s startup finances, subsidizing the company’s plans and aspirations with loans from the European Investment Bank, which made the company the most prominent and watched battery startup company in terms of fueling the continent’s electric vehicle expansion.
“We backed several loans of the European Investment Bank to Northvolt battery factory,” Veerle Nuyts, a spokesperson for the European Commission, told reporters at a press conference regarding the matter on November 25, 2024, EuroNews reports. Nuyts also confirmed that Northvolt’s debt to the EIB “currently amounts to $313m, under the guarantee of the European fund for strategic investments.”
Some of its other debts go to automakers, like the Volkswagen Group, who invested in Northvolt by purchasing stakes in the company to the tune of 21%, while also placing an order for around €14 billion worth of battery cells over a 10 year period, in 2019. BMW was also an investor and buyer of Northvolt batteries, but the Munich-based automaker also supposedly pulled out of its deal, while Volkswagen also reduced its stake in the company and its order for batteries.
Porsche Won’t Be The Only Automaker Affected
Because the Volkswagen Group facilitated the investment into Northvolt, Porsche supposedly won’t be the only automaker affected as it will affect other brands within VAG’s portfolio. electrek notes that some of Audi’s EVs may also take a hit from the bankruptcy, affecting models like the new A6 e-tron. But. thankfully, Audi has a backup plan and could tap into its agreements with other battery suppliers, LG and CATL, to mitigate any production delays.
Automakers from both the United States and Europe have been resorting to government subsidies in attempts to remain competitive and relevant against China’s huge growth and boom in electric vehicle propulsion and battery technology, with hopes of fast-tracking their research and development.
The Volkswagen Group isn’t the only major conglomerate affected by battery company woes, as Stellantis also suffered from setbacks with its investments in Automative Cells Company, which halted battery production at its key facilities in Italy and Germany. Volvo, Volkswagen, and BMW are also affected by Northvolt’s bankruptcy.
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