(Bloomberg) -- Shanghai Putailai New Energy Technology Co., one of the world’s largest suppliers of battery materials, has pulled a plan to build a factory in Sweden following the collapse of Northvolt AB.
The decision to terminate the $1.4 billion anode factory in Sundsvall came after the company and authorities in the Nordic nation failed to reach an agreement on the requirements needed to build the plant, according to a filing at the Shanghai Stock Exchange on Friday.
The move marks yet another blow for Sweden’s green ambitions in the northern part of the country where there is an abundance of cheap, renewable power. The planned factory was expected to add almost 2,000 jobs to the region and Northvolt had been slated as its main customer.
PTL said Swedish authorities had assessed its plan to build a 100,000-ton anode factory according to foreign direct investment rules that took effect in February this year. Disagreements between the two parties over shareholder structure, management setup and proprietary rights of research and development ultimately led to Sweden declining to approve the project.
The Chinese manufacturer said there had been no capital outlay as the project build hadn’t yet commenced. The company will continue to monitor trade policies of key countries and expand overseas if there are opportunities, it said.
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