Swedish battery manufacturer Northvolt has filed for bankruptcy in its home country. A court in Stockholm will take over the proceedings. According to an official announcement, the step has become necessary because Northvolt has not been able to secure sufficient financing in spite of several attempts to restructure the company. Northvolt cited rising capital costs, geopolitical uncertainties, and problems in the supply chain as reasons for the latest development. In addition, the company experienced partially unforeseen difficulties in its ramp-up of production.
Germany and North America await decision
Despite Chapter 11 proceedings in the United States and financial support from creditors, no sustainable solution could be found for the company. The bankruptcy proceedings will now ensure an orderly liquidation of the companyʼs assets. This includes the future of the subsidiaries Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB, and Northvolt Systems AB. The subsidiaries in Germany and North America are not part of the Swedish bankruptcy proceedings, but their future depends on the decisions of the bankruptcy trustee.
Site and technologies could be sold
The bankruptcy affects not only the financial structure, but also ongoing production. According to Northvolt, its Skellefteå plant has recently made progress in cell production. The bankruptcy trustee will decide whether the site and technologies will be continued or sold. Northvolt is still looking for investors.
Source:
https://northvolt.com/articles/northvolt-files-for-bankruptcy-in-sweden/
