NORTHVOLT – ETT LUFTSLOTT I DEN GRÖNA OMSTÄLLNINGEN : Kan Soft budget constraint och stigberoende peta hål på omställningens fundament

This study examines the position of Northvolt as a company within the green transition, comparing it to other global battery manufacturers. It focuses on the significance of choosing Skellefteå as a production site and the role of state support in Northvolt's development. The study explores two main questions: Should Northvolt be saved by state support based on the theory of soft budget constraint? Under what conditions should the state provide financial support packages to companies that serve important functions for society? A qualitative approach is used, relying on public reports, corporate documents, media sources, prior research, and political decisions to analyze the intersection of economic incentives and political strategies. The study investigates János Kornai's ‘soft budget constraint’ theory to assess how state interventions affect the efficiency of state-dependent firms. The main conclusion from the first question is that, according to the soft budget constraint theory, Northvolt should not be saved by the state as it may lead to inefficiencies, reducing the company’s incentive for long-term responsibility and effectiveness. On the second question, however, the study concludes that Northvolt should receive state support, as it could serve as a model for Sweden's green transition, similar to England’s role during the Industrial Revolution. This conclusion is grounded in government statements about Sweden's role in becoming a leading exporter of climate-friendly technologies and fostering the green transition.