According to Reuters, the famous automotive company, Volkswagen has recently reduced the value of its stake by 21% in Northvolt, a Swedish battery company that recently filed for bankruptcy protection in the United States (US).
The value of the shares, which were worth €693 million ($726 million) at the end of 2023, is now lower throughout 2024, although the latest figures have not yet been disclosed.
Northvolt faces major challenges due to failure to meet production targets and EV demand in Europe which is much lower than expected.
Other shareholders such as Goldman Sachs have also taken drastic measures, planning to withdraw the value of its $900 million shares to zero.
Swedish pension fund AMF also reported a significant decrease in its holdings.
In addition, Scottish fund manager Baillie Gifford, which is Northvolt's sixth largest shareholder with a 4.8% stake, also reported a large decline in the value of its investment.
At the end of September, Baillie Gifford valued its investment in Northvolt at around 20 million pounds ($25 million), down from 375 million pounds at the end of March.
Is this a sign that the EV industry is in decline, or a temporary challenge that can be overcome?
