Eskilstuna Municipality has filed an appeal against the Swedish Chemicals Agency's decision to grant Senior Material a permit to use methylene chloride in its production of separator film for electric vehicle batteries. The municipal board reached this decision on October 2nd, with the community building committee scheduled to address the matter during its meeting on October 3rd. The appeal represents a significant challenge to the regulatory approval process for industrial chemical use in Sweden.

The controversy centers on methylene chloride, also known as dichloromethane (DCM), a chlorinated solvent that has been nationally prohibited in Sweden since 1996 due to health risks for workers handling the substance. The chemical is classified as carcinogenic and capable of causing genetic changes, while also being harmful to aquatic organisms. Senior Material received an exemption from this ban for its planned production operations, marking a notable exception to Sweden's long-standing restrictions on the substance.

Public concern over the potential environmental impact has manifested in substantial community opposition. Hundreds of demonstrators gathered outside Senior Material's factory in the Svista industrial area on October 1st, expressing worries about future emissions of the chemical. The protest movement has gained momentum through social media campaigns and a petition that has collected over 130,000 signatures demanding the cessation of methylene chloride emissions.

Municipal officials cite multiple grounds for their appeal, particularly emphasizing the volume of methylene chloride approved—1,280 tons over a two-year period—which they describe as unreasonable given Sweden's phase-out objectives for the substance. Niklas Edmark, business director for Eskilstuna Municipality, stated that the approved quantity significantly exceeds what has been permitted in Sweden in recent years and conflicts with national sustainability goals. The municipality argues that the Chemicals Agency should have applied the precautionary principle more rigorously and expanded its assessment criteria given the scale of proposed use.

Shares in European automakers Volvo Cars and Stellantis surged on Thursday as stronger-than-expected U.S. sales figures alleviated investor concerns that tariffs might dampen demand. The positive performance came despite ongoing worries about higher import duties imposed by U.S. President Donald Trump as part of his administration's broader push to boost domestic manufacturing. Automakers across the industry have been implementing strategies to mitigate potential tariff impacts, including focusing on higher-margin vehicle segments.

Stellantis reported its first quarterly growth in the U.S. market this year, with new car sales rising 6% in the third quarter. The French-Italian-American automaker's shares climbed as much as 7% following the late Wednesday announcement. The company noted that all of its major brands—Jeep, Chrysler, Ram, and FIAT—experienced sales growth during the period, indicating broad-based strength across its product portfolio despite the challenging trade environment.

Volvo Cars similarly posted encouraging results, with shares rising 5% after the Swedish automaker reported a 3% increase in third-quarter U.S. sales. The company's sales composition revealed that non-electrified models continued to dominate its U.S. business, with nearly 70% of September volumes consisting of mild hybrids and other internal combustion engine vehicles. This sales mix highlights how traditional powertrains remain central to the company's American market strategy even as it expands its electric vehicle offerings.

The Swedish carmaker, majority-owned by China's Geely Holding, faces significant exposure to U.S. tariffs since most of its U.S.-bound vehicles are manufactured in Europe. Currently, Volvo produces only its electric EX90 SUV in the United States, but the company has announced plans to begin local production of its popular XC60 plug-in hybrid by the end of 2026. An additional hybrid model is scheduled for production at its South Carolina factory before 2030, representing a strategic shift toward localized manufacturing to reduce tariff vulnerability.