Swedish battery manufacturer Northvolt has voluntarily filed for Chapter 11 bankruptcy in the United States to restructure its operations and access additional funding. The move will provide Northvolt with approximately $145 million in cash collateral and ensure business continuity during the reorganisation process.
The company announced it will maintain operations, including deliveries to customers, fulfilling obligations to key suppliers, and paying employee wages. Northvolt also secured $100 million in debtor-in-possession (DIP) financing from one of its existing customers to support its ongoing activities during the restructuring.
Northvolt Ett, the flagship gigafactory in Skellefteå, Sweden, and Northvolt Labs in Västerås, Sweden, will remain operational as production ramps up to meet customer demand. Additionally, subsidiaries Northvolt Germany and Northvolt North America, which are financed independently, will continue their activities outside the Chapter 11 proceedings.
“This decisive step will allow Northvolt to continue its mission to establish a homegrown, European industrial base for battery production,” said Interim Chairman of the Board Tom Johnstone. “Despite near-term challenges, this action to strengthen our capital structure will allow us to capture the continued market demand for vehicle electrification.”
Northvolt aims to complete its restructuring by the first quarter of 2025. As part of this process, the company will explore new investment opportunities from strategic and financial partners, alongside existing lenders, shareholders, and customers.
Johnstone emphasized the company's commitment to its stakeholders, stating, “We aim to establish a resilient base of operations and a competitive platform for innovation and long-term growth that will advance our work to build a more sustainable society.”
Northvolt remains focused on its core mission to meet growing demand for battery solutions amid a global shift toward electrification and sustainability.
