Northvolt files for bankruptcy

The board writes in a press release that despite all efforts to secure financing to continue, it is now forced to file for bankruptcy:

"Despite pursuing all available options to negotiate and implement a financial restructuring, including a Chapter 11 restructuring process in the United States, and despite liquidity support from our lenders and key counterparties, the company was unable to secure the necessary financial conditions to continue in its current form. The Board therefore determined that this is the only available solution while the company pursues all realistic options to obtain financing to continue operating during the Swedish bankruptcy process," the company said in a press release.

“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", Tom Johnstone, Interim Chairman of Northvolt’s Board of Directors, commented in the press release.

The Stockholm District Court will now appoint a bankruptcy trustee to manage the bankruptcy, investigate options for a takeover, possibly sell businesses and assets, and settle the company's obligations.

"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 upwards 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,” said Tom Johnstone.

The bankruptcy petition concerns the companies Northvolt AB, Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB and Northvolt Systems AB. The entities Northvolt Germany and Northvolt North America are not filing for bankruptcy.

Northvolt's bankruptcy is the largest bankruptcy in Sweden in modern times, larger than both Saab's and Northland Resources' bankruptcies. At its peak, the company had around 5,000 employees. Last year, it cut 1,600 employees. At the end of last year, the company's debts exceeded SEK 58 billion, and it has incurred more costs since then. The current level of debt is not known.

Lennart Håkansson

editor@northswedenbusiness.com