Swedish battery maker Northvolt files for bankruptcy protection in US

Swedish electric vehicle battery maker Northvolt has filed for bankruptcy protection from creditors in the United States. In a press release today, the company said the move would allow it to restructure its debt and create a sustainable foundation for its future operations. It added that it would continue normal operations during the reorganisation.

According to Reuters, Northvolt’s financial difficulties are a blow to Europe’s hopes that the company will help reduce Western automakers’ dependence on battery suppliers from China, such as CATL.

Northvolt’s largest shareholder is German automaker Volkswagen. It said today that it is in close contact with the Swedish company. Volkswagen, which also owns Škoda Auto, holds a roughly 21 percent stake in Northvolt. Other major Northvolt shareholders include German luxury carmaker BMW and US investment bank Goldman Sachs.

Northvolt has around 5.8 billion dollars in debt (roughly 140 billion Kč). The company currently has around 30 million dollars in cash, enough to keep it operating for only about a week, Reuters reported.

Northvolt said it had secured additional financing as part of its entry into bankruptcy proceedings. It added that it expects to complete the restructuring in the first quarter of next year.

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