Northvolt, a Swedish battery maker, is reportedly considering US bankruptcy protection as a strategy to address its financial challenges. The company, once considered Europe’s top electric vehicle battery producer, is now focusing on survival by reducing its operations due to production issues, the loss of a key customer, and difficulties in securing additional funding.
Since its establishment in 2016, Northvolt has secured approximately €10bn ($10.57bn) in funding. In July 2023, the company began a comprehensive review of its strategic direction. Recent reports indicated stalled discussions between Northvolt and its creditors, shareholders, and at least one customer regarding short-term financing. However, sources revealed that these discussions have now resumed, despite recent setbacks.
A Northvolt spokesperson declined to comment on the possibility of Chapter 11 proceedings or other future plans. The spokesperson mentioned that the company has been exploring various options throughout the strategic review process. In October 2024, one of Northvolt’s subsidiaries, Northvolt Ett Expansion AB, filed for bankruptcy as part of a restructuring effort to reduce costs and scale back plans for expanding battery manufacturing capacity.
Despite these challenges, Northvolt is reportedly close to securing a financing package exceeding $300m to strengthen its financial stability. The company has been in discussions with investors and lenders to arrange short-term funding. This potential funding could provide a much-needed boost to Northvolt’s financial position.
Overall, Northvolt’s journey reflects the evolving landscape of the electric vehicle industry and the challenges faced by companies in the renewable energy sector. As the company navigates through its financial difficulties, the outcome of its strategic decisions and potential bankruptcy protection will shape its future in the competitive battery market.
