It’s Friday afternoon at the business office in Skellefteå. Anja Palm is sitting just inside the doors, talking with a colleague when Norran arrives.
– Our desks are in an open-plan office, but I often end up here, she says, pointing to the sofa area.
Working as head of enterprise is hectic by nature, but the past year has been something else entirely. At any moment, the schedule can change.
– It’s been intense. A year ago, Skellefteå was Sweden’s fastest growing municipality. Today, we’re one of the municipalities losing the most residents, says Anja, who was part of the team that brought Northvolt to the city eight years ago.
Back then, in her role as establishment lead, she heard in March 2017 that municipalities in Norrbotten were working on a questionnaire from a potential battery manufacturer.
– There had been articles about Peter Carlsson, “the Tesla Swede”, having something in the works, but they hadn’t announced their plans, Anja recalls.
Skellefteå municipality had already prepared materials for various inquiries about energy-intensive data centres and was well equipped. In just two weeks – thanks to close collaboration with Skellefteå Kraft, among others – they managed to answer all the questions.
About six months later, the municipality was selected as the establishment site, beating out competition from 40 other municipalities. Now – eight years later – Northvolt has filed for bankruptcy.
Do you think there’s anything Skellefteå, as a municipality or a community, did or didn’t do that contributed to Northvolt’s bankruptcy?
– No, I don’t think so, says Anja, pausing briefly before continuing.
– I don’t want to speculate about why Northvolt went bankrupt, but it’s clear they didn’t reach profitability in their production at the pace they needed. They’ve spent more money than they brought in – and that has nothing to do with how Skellefteå municipality has acted.
Are you disappointed in how the company was run?
– I’m disappointed that it turned out this way. Without blaming any individuals, we had really hoped Northvolt would be able to pull through.
She doesn’t regret reaching out to Northvolt in 2017. In her view, the establishment – despite the bankruptcy – has contributed to positive development in Skellefteå.
– It created an incredible energy and belief that we can achieve things together. I wouldn’t want to be without that, says Anja, who also points out that several already planned investments – such as Sara kulturhus, the harbour, and certain housing projects – progressed more quickly thanks to the industrial initiative.
– We’re on a development journey that began even before Northvolt. Much of the value created during this period remains, regardless of what happens next, she says.
Anja also believes that everything that made Northvolt choose Skellefteå in the first place is still in place – and “even more besides.” She’s referring to strengths like access to green energy and available land – and now also the presence of skilled workers and housing.
– The major concerns ahead of the establishment were around skills and housing, and you could actually say we’ve managed those. Even if it’s been challenging, she says.
If there are so many advantages here – could that attract other major investments?
– Absolutely, we’re in ongoing discussions with several actors who are looking at Skellefteå precisely because of the conditions we offer.
Since the bankruptcy, inquiries are said to have increased.
– Many are thinking that the energy Northvolt would have used for battery production is now available. In fact, there has always been enough energy, even if Northvolt had reached full production, but that hasn’t been widely understood.
Anja doesn’t want to say how large the companies making inquiries are, or how many employees might be involved. But they range from small players to larger industries.
– We don’t have a 100 percent “hit rate,” of course, but we’re in active talks with quite a few companies that are interested in coming to Skellefteå – regardless of what happens with the battery factory.
When it comes to the battery factory specifically, Anja still hopes that battery cells will be produced there in the future. A possible rescue for the factory, she says, could be EU funding allocated specifically for European battery production.
– There’s an EU programme, Battery Booster, designed together with the industry to help finance European cell manufacturing. We hope it will be in place within a few months, and that it could be an opportunity for a new owner.
How hopeful are you that a new player will come on board?
– It’s hard to be certain, but we hope so.
You have some insight – is there a buyer in the works?
– According to the bankruptcy trustee, there are several interested parties looking at it, but many issues need to be resolved, including financing. The EU programme could be a key part of that, but other financing will also be needed until then. These are matters being worked on from several different angles.
There has been some criticism that Skellefteå municipality has focused too much on large establishments, like Northvolt.
Do you talk too much about the big players?
– No, we don’t. When we look at what we’ve communicated from the enterprise office, the place brand, and the municipality in general, we actually highlight the local business community even more. And that’s important. There are 6,000 companies here, working every day to grow, and they are the key to a good community. But the media tends to focus a lot on the big players, says Anja.
What's it like to have the spotlight on you, both from local and national media?
– At its core, it’s positive, even though I don’t always agree with everything that’s been written, especially not in recent months.
She says there have been many misunderstandings about Skellefteå municipality, and that they have had dedicated staff actively alerting journalists to these inaccuracies.
What kind of inaccuracies?
– There has been speculation that Skellefteå municipality is close to bankruptcy and that the municipality has taken on debt to build the community. We haven’t done that. However, we have invested in the community and the municipality’s core mission using our own capital.
Skellefteå municipality is one of the most financially solid in Sweden, she says.
– We are as far from bankruptcy as a municipality in Sweden can be.
It’s true that municipally owned companies have borrowed money – but that’s nothing unusual, according to Anja.
– I don’t think there’s a single property company building new developments that hasn’t borrowed for such a project. That’s just how the market works.
In summary, Anja Palm is undeniably positive about Skellefteå’s future despite the challenging situation. She highlights hard assets such as green electricity, land availability, and infrastructure that create room for growth – but also softer values such as cultural offerings and a community that welcomes newcomers.
– That, combined with the municipality’s stable economy, makes me believe Skellefteå has good opportunities for growth. Few other municipalities could handle both rapid growth and the situation we’re in now
So even if the battery factory doesn’t happen, are you confident about Skellefteå's future?
– It would be incredibly disappointing if there is no battery production, but that would open up an opportunity for someone else. How it goes for the battery factory will of course affect the near future, but looking at the longer term, the value of an attractive industrial site is in place that can be used for other purposes.
Are you convinced that Skellefteå will be bigger in five years than it is now?
– Yes, I am.