Swedish electric vehicle (EV) battery startup Northvolt has filed for bankruptcy in Sweden due to financial and operational challenges.
The company’s board of directors made the decision after an “exhaustive” search for viable solutions to secure operational future.
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This move comes amid geopolitical instability, rising capital costs, supply chain disruptions, and shifts in market demand.
Northvolt said it has faced a series of compounding challenges including internal hurdles in boost production, both anticipated and unforeseen.
Despite efforts to restructure financially, including a Chapter 11 process in the US, and receiving liquidity support from lenders and key counterparties, the necessary financial conditions for continuity could not be met, the firm said.
As a result, the company’s board determined that bankruptcy was the only solution while exploring all financing options during the Swedish bankruptcy process.
A Swedish court-appointed trustee will now oversee the sale of Northvolt’s business and assets, and the settlement of its obligations.
The process aims to ensure an orderly transition for employees, partners, and creditors. Mikael Kubu has been nominated by Northvolt as trustee.
The bankruptcy filing includes Northvolt, Northvolt Ett, Northvolt Labs, Northvolt Revolt, and Northvolt Systems.
However, Northvolt’s subsidiaries in Germany and North America are not included in the bankruptcy filings, and decisions regarding these entities will be made by the trustee in consultation with the Group’s lenders.
Northvolt board of directors’ interim chairman Tom Johnstone said: “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.
“We are hopeful that the outreach we have undertaken with potential investors during the Chapter 11 process will accelerate identifying the necessary financing to allow continued trading under the Swedish bankruptcy process.”
In October 2024, Northvolt’s subsidiary company filed for bankruptcy following a restructuring effort aimed at lowering cost and cutting back battery manufacturing capacity expansion plans.
