Battery manufacturer Northvolt AB has filed for bankruptcy in Sweden, impacting its subsidiaries Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB, and Northvolt Systems AB. However, Northvolt's operations in Germany and North America are not affected by the filing.
In a statement, Northvolt explained that recent challenges—including rising capital costs, geopolitical instability, and disruptions to supply chains—have contributed to its deteriorating financial position. The company also faced significant hurdles in ramping up production amid a highly complex industry.
Tom Johnstone, interim chairman of Northvolt's board of directors, expressed the difficulty of the situation, stating, “This is an incredibly difficult day for everyone at Northvolt… The passion, dedication, and innovation of our team has been nothing short of extraordinary, and we deeply regret that there is not a different path forward.”
Despite efforts to secure financial restructuring, including a Chapter 11 process in the United States and support from lenders, the company could not meet the necessary financial conditions to continue in its current form. The board ultimately decided that filing for bankruptcy was the only viable option as Northvolt seeks financing to continue operations during the Swedish bankruptcy process.
In addition to its financial struggles, the company highlighted several internal achievements, including production improvements in Skellefteå. “We ramped up production to meet customers' needs, reduced operational cash outflow by 55%, made tough decisions to pause or delay expansion plans… and delivered our first one million battery cells to a European customer,” Johnstone added.
The bankruptcy filing will see a Swedish court-appointed trustee oversee the process, including the sale of assets and the settlement of obligations. Mikael Kubu has been nominated as trustee, with the process conducted under Swedish insolvency law to ensure an orderly transition for employees, partners, and creditors.
Northvolt remains hopeful that outreach with potential investors, undertaken during the Chapter 11 process, will help secure the financing needed for the company's continued operations.
