Swedish battery maker Northvolt has filed for Chapter 11 bankruptcy in the U.S., citing a “dire” liquidity crisis.
Once a beacon for Europe’s electric vehicle (EV) ambitions, Northvolt now faces $5.8 billion in debt and limited cash reserves. Operations will continue during restructuring, expected to conclude by Q1 2025
Northvolt has secured $245 million in financing for the process, including $100 million from Swedish truck maker Scania, its largest customer. Interim board chairman Tom Johnstone stated this move would enable Northvolt to maintain its mission of establishing a European industrial base for EV battery production.
This development is a setback for Europe’s efforts to reduce reliance on Chinese battery makers like CATL and BYD. Northvolt, employing 6,600 staff across seven countries, attributes its struggles to production issues, the loss of a major client, and insufficient funding.
