Battery manufacturer Northvolt files for bankruptcy in Sweden
Company was key to Europe's hope to build own battery supply chain to compete with Asian rivals
The manufacturer said it has experienced a series of challenges in recent months, including rising capital costs, geopolitical instability, subsequent supply chain disruptions, and shifts in market demand, next to internal challenges in its production ramp-up.
Despite attempting a financial restructuring, including a Chapter 11 restructuring process in the US, and despite liquidity support from lenders and key counterparties, Northvolt was unable to secure the needed financial conditions to continue in its current form.
“This is an incredibly difficult day for everyone at Northvolt. We set out to build something groundbreaking — to drive real change in the battery, EV and wider European industry and accelerate the transition to a green and sustainable future,” said Tom Johnstone, interim chairman of Northvolt’s board of directors.
“The outcome is especially hard considering not only the level of engagement and interest we held with potential partners and investors in recent months but also the clear improvement and upward trajectory that we have been seeing in Northvolt's production in Skellefteå, where cell output from serial production lines has doubled and we have secured a 50% improvement in production yield since September.”
The company said it will pursue all options to obtain financing to continue operating during the Swedish bankruptcy process.
Following the filing, a Swedish court-appointed trustee will now oversee the process, including the sale of the business and its assets and the settlement of outstanding obligations, in accordance with Swedish insolvency law.
The units Northvolt AB, Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB and Northvolt Systems AB filed with the Swedish court.
Northvolt Germany and Northvolt North America are not filing for bankruptcy in their respective jurisdictions.
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