EV battery firm Northvolt has announced that a subsidiary company has filed for bankruptcy. The development follows a restructuring effort aimed at lowering cost and cutting back battery manufacturing capacity expansion plans.
Following the decision to suspend the Northvolt Ett Expansion project, Northvolt AB's subsidiary Northvolt Ett Expansion AB has filed an application for bankruptcy at the District Court of Stockholm. Northvolt said the application was filed ‘due to the financial situation of Ett Expansion AB’.
Since announcing suspension of the Ett expansion project on September 23 as part of the Northvolt Group’s rescoping of operations in Sweden, all work at the expansion project has been suspended.
Northvolt Group said it continues to be in dialogue with stakeholders for continued cooperation within Northvolt Group’s ongoing operations.
In September, Northvolt outlined a review of operations in Sweden which will result in the loss of 1,600 jobs.
The restructuring comes amid slowing sales of battery electric vehicles (BEVs) in Europe. The company cited headwinds in the automotive market.
Northvolt said the rescoping of operations is critical to ensure a ‘sustainable operation and cost base’.
Looking forward, the Northvolt Group said it is concentrating its resources towards accelerating production in large-scale cell manufacturing within the fully-built, first phase of Northvolt Ett and ‘delivering on commitments to its automotive customers’.
