Swedish battery manufacturer Northvolt said Tuesday it is carrying out a strategic review to ensure its global expansion is done effectively, Kallanish reports.

“Our plans for Germany and Canada are key to Northvolt’s ambitions to secure a competitive position in the global battery industry, and these projects remain under active development today,” a spokesperson says in an emailed statement.

The company explains that the review, set to conclude in the autumn, involves the evaluation of timelines and capital allocation “to ensure we are pursuing the most effective build-out of capacity possible.”

In addition to its flagship gigafactory in Skellefteå, Sweden, Northvolt started earlier this year the construction of a 60-gigawatt-hour plant in Heide, Germany. The so-called Northvolt Drei gigafactory is planned to start production in 2026.

Thanks to a $1.89 billion loan, Northvolt progressed with another 60-GWh gigafactory – the Northvolt Six in Quebec, Canada. This integrated plant is also planned to produce its first batteries in 2026.

With the review, timelines and capacities may change. However, the company reiterates it remains committed to its ambitions of “emerging as a leading supplier of sustainable, high-performance batteries.”

The manufacturer, which has recently lost a $2 billion contract from BMW, has raised €15 billion ($16 billion) in debt and equity. It expects to close a $5 billion non-recourse project financing this year to enable the expansion of the 16-GWh Northvolt Ett.

In its annual report released on Tuesday, Northvolt unveiled its revenue rose 20% in 2023 to $128 million. However, its net loss quadrupled to $1.16 billion.

“In 2024, Northvolt Group will focus on further expanding the large-scale production of the gigafactory in Skellefteå,” the report says. “With help from future financing and fundraising, the group aims to reach a market share in Europe of around 25% by 2030, which means an estimated 150 GWh in production capacity.”

Ceo Peter Carlsson told the FT the company would produce about 1 GWh this year if it managed to quintuple production from current levels by year-end. It should then produce “a handful” of GWh in 2025, aiming for profitability in 2026.

In addition to production ramp-up hiccups, Northvolt has also warned of headwinds such as market uncertainties and geopolitical tensions. It says armed conflicts and increased tension in the Middle East, plus the war in Ukraine impacted its decision-making and operations. This includes disruptions to the financial markets, supply chain and logistics.

“Increased protectionism and global trade disputes are expected challenges that Northvolt will have to manage. Other strategic risks include changes to the new energy landscape and competitor actions, customer behaviour and reputational risk,” its annual report states.  

Carllson and his team will focus on effectiveness, productivity and resource use, particularly related to internal cathode active material production. Recruitment, upskilling and execution of cell production activities are also top on the agenda when tackling operational risks.