Northvolt's Unknown Funding from the U.S.
Northvolt’s subsidiary, Cuberg, received millions of dollars in grants from California and the Department of Energy before the inauguration of its facility outside San Francisco earlier this year. However, in August, Northvolt announced the closure of the facility, citing a shift in research operations to Sweden, which left around 200 employees without jobs.
Cuberg’s San Leandro facility was inaugurated in February 2024, attended by key figures such as the U.S. Secretary of Energy Jennifer Granholm, Congresswoman Barbara Lee, and Northvolt CEO Peter Carlsson. The event underscored Cuberg’s critical role in California’s clean energy future. Granholm remarked, "Instead of building anodes, cathodes, or separator materials in Nanjing, China, we’re building them here".
In March 2023, the California Energy Commission (CEC) awarded Cuberg 11.2 million dollars to establish the 45,000-square-foot zero-emission vehicle battery manufacturing facility in San Leandro. The plant was expected to produce 200 megawatt-hours of battery cells annually and create over 300 high-quality jobs within five years. Of that, $5 million was paid out.
Cuberg also received two grants through the CEC’s Electric Program Investment Charge program. One was for $1.6 million, with $1.4 million disbursed. The other was for $3.5 million, and all of it was disbursed.
Jonah Steinbuck, director of the California Energy Commission’s Energy Research and Development Division, comments on the funding Cuberg received.
"The innovation economy is no stranger to ups and downs, particularly where early-stage and cutting-edge technology companies are concerned. We remain confident that the long-term prospects of scaling next-generation battery technologies to meet our 2030 and 2045 clean energy goals in California are strong. CEC will continue to support promising technologies to help the state reach these goals."
In 2018 and 2019, Cuberg received money from the federal Department of Energy: first, $295,000 through the LEEP program, and then $1,199,787 through SBIR awards.
Despite the financial support from the U.S., Northvolt announced the facility's closure six months after the inauguration. Following the closure, the company auctioned off equipment, and most of Cuberg’s more than 200 employees were left searching for new jobs.
Silicon Valley Nordic Beat (SVNB) has reached out to the California Energy Commission for comments but has not yet received any answers.
Northvolt acquired Cuberg in 2021 intending to integrate its next-generation lithium-metal battery technology into its broader electric vehicle strategy.