In Stockholm, Sweden an upstart battery maker, Northvolt, is trying to recreate the value chain for European car manufacturers making the switch to EVs. With two founders from Tesla and two experienced financiers at the helm, the company seems bound for success. But can they partner with government, scale fast enough, and truly be part of the climate solution?
Harvard Business School professor George Serafeim discusses what it takes to scale a business—the right people, in the right place, at the right time—with the aim of providing a climate solution in the case, “Northvolt, Building Batteries to Fight Climate Change.” As part of a new first-year MBA course at Harvard Business School, this case examines the central question: what is the social purpose of the firm?
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Sweden’s Northvolt Electric Battery Maker is a quickly growing startup, with a mission to provide clean, safe, and reliable energy to transform the world. The company was founded with the aim of developing large-scale electric battery systems, as well as contributing to Europe’s energy shift. Founded by Peter Carlsson, who was previously Tesla’s head of procurement and supply chain affairs, Northvolt aims to revolutionize the electric battery market.
The company’s commitment to the environment and sustainability is remarkable, as it has plans to construct Europe’s largest lithium-ion battery factory. Northvolt already has over 7,000 investors, and had its first major investment in late 2016 when an American firm provided US$100 million.
Northvolt is not content to stop there however. it has a mission to create a large-scale battery production network across Europe, in order to create ne solar and wind power in Europe by 2030. Northvolt recognises that Europe needs to adopt renewable energy as soon as possible if it desires to meet its Paris Agreement goals, and is trying to serve that purpose.
What makes Northvolt truly remarkable is their focus on the labor and safety of their workers. The company values the dignity and rights of its employees, and seeks to make sustainability the center of its entire business venture, not just its environmental goals. Northvolt is working hard to create jobs for highly-skilled engineers, technicians and operations personnel, as well as structure the company to align with European Union labor standards.
All in all, it is clear that Northvolt Electric Battery Maker is a startup with a mission. Thoughtfully striving to make an ecological, societal, and economic impact on Europe, Northvolt is certainly one to watch out for in the near future.
