Sven Fuhrmann, Volkswagen's investment chief, steps down from Northvolt's board
Sven Fuhrmann, Volkswagen’s head of investments has stepped down from the board of Swedish battery maker Northvolt marking a major change in the company’s leadership as the company announced on Monday. Fuhrmann had held a seat on Northvolt’s board since last year representing Volkswagen which owns 21% of the company.
Northvolt once hailed as Europe’s top contender for producing electric vehicle batteries is currently facing several challenges.
As per the reports, the company is cutting jobs, tackling production issues and also dealing with the loss of a major customer contract. To address these issues, Northvolt is in talks with stakeholders to raise capital.
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Despite Fuhrmann’s departure, Northvolt expects Volkswagen to appoint a replacement, ensuring continued cooperation between the two companies as the company told Reuters.
It was said that Volkswagen’s support is crucial for Northvolt and the German automaker’s brands, such as Audi and Scania which rely on Northvolt for battery supplies. However, job cuts and production issues have raised concerns about the company’s ability to compete in the electric vehicle battery market.
Northvolt told Reuters that it’s engaging in discussions with stakeholders to secure additional funding, but hasn’t disclosed the specific parties involved.
Volkswagen and Northvolt teamed up in 2019 to make lithium-ion batteries in Germany and previously announced that they’re getting ready to break ground at the construction site before the year ends.
Thomas Schmall, CEO of Volkswagen Group Components, said that making battery cells in Salzgitter is a big step towards electric cars that they are combining expertise, production and research to drive innovation.
Volkswagen is serious about electric cars and wants to master battery production. They’re working with top suppliers like LG Chem, Samsung, and SKI in Europe, CATL in China and SKI in the US.
By 2025, Volkswagen expects to need over 150 gigawatt hours of batteries annually in Europe alone and similar amounts in Asia.
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