Thursday, March 13, 2025 - Swedish electric car battery manufacturer Northvolt has filed for bankruptcy after failing to secure the necessary financing to sustain its operations. The company announced on Wednesday, March 12, that, despite exploring “all available options” and receiving “liquidity support from our lenders and key counterparties,” it was unable to continue in its current form.
Founded in 2016, Northvolt was considered a key player in Europe’s
efforts to compete with Asia and the United States in battery cell production,
a critical component for zero-emission vehicles. However, the company struggled
with mounting debt, sluggish demand, and production setbacks. These issues
culminated in May 2024 when car manufacturer BMW canceled an order worth two
billion euros ($2.2 billion).
In September, Northvolt announced it was cutting 1,600 jobs—representing
a quarter of its workforce—and halting the expansion of its Skellefteå site in
northern Sweden. The company later filed for Chapter 11 bankruptcy protection
in the United States in November to restructure its debt and reorganize its
business.
According to filings in the U.S., Northvolt’s total debt amounts to $5.8
billion.
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