Crash Report: Northvolt

Management discovers the negative terminal

As a proud EE grad (LA Tech, class of ’87), I’ve always had an affinity for battery companies. After reading about the downfall of Northvolt, once heralded as Europe’s beacon in battery manufacturing, I was disappointed but obliged to put on my CEO hat and once again see a big miss on a critical aspect of effective leadership: the importance of identifying and addressing management issues before they spiral into crises. Obviously, visionary thinking is vital when building complicated technology, but the ability to anticipate and sidestep common pitfalls often determines a CEO's success.

Northvolt's journey began with the ambitious goal to establish itself as a leading European battery producer, securing substantial investments and partnerships with industry giants like Volkswagen and BMW. However, the company encountered significant challenges, including production inefficiencies, safety incidents, and struggles to meet customer demands. These operational failures culminated in the res…