Volkswagen investment chief steps down from Northvolt board amid challenges

Volkswagen’s head of investments Sven Fuhrmann has quit from Swedish battery maker Northvolt’s board, the company confirmed Monday. No successor has yet been named, however; and while Fuhrmann was appointed to the board last year, he will be replaced by an appointee from Volkswagen. Northvolt’s annual report says that Volkswagen is the biggest shareholder with a 21 percent stake.

Once projected as a leading hope for Europe in painting next to its neighbors to the continent’s smarter electric-vehicle ambitions, Northvolt has run into production woes, job cuts and has recently lost its key contact in the car business. With additional funding sought from the Swedish battery maker amid these difficulties, it has opened talks with competitors and other stakeholders to access more money but does not name specific investors participating in those discussions.

"Northvolt is a long standing partner of Volkswagen and we are working closely with Volkswagen and its brands that Northvolt serves," Northvolt said in a statement. A strategic relationship: Volkswagen’s brands sourcing from Northvolt include Audi and commercial vehicle manufacturer Scania.

It’s part of Volkswagen’s continued push into the electric vehicle market, and the company is trying to secure battery supply for its growing EV lineup. However, Northvolt’s challenges may put pressure on the strategic partnership in particular as the Swedish company straddles funding and operational hurdles.

Volkswagen also did not respond on Thursday to questions about its plans with Northvolt in the future, or on Fuhrmann's departure.

This latest shift follows mounting pressure on Europe's EV battery industry as China and the U.S. lead the way in battery making. Northvolt's own struggle to keep production momentum underscores the broader impediments to European companies aiming to create competitive space in the quickly emerging electric vehicle supply chain.