Swedish Northvolt Files for Bankruptcy in Major Blow to European EV Sector

Date: 23 November 2024 - 21:42

News ID: ۱۳۳۹۱۹

BRUSSELS (Euronews) - The Swedish battery developer and manufacturer, Northvolt, has filed for bankruptcy in the U.S., as the company struggles with mounting debt, after it was unable to secure rescue funding and was left with only one week of cash reserves.
Swedish battery cell maker Northvolt AB, which produces battery cells for electric vehicles (EVs), has announced that it has filed for Chapter 11 bankruptcy in the U.S.
This is being seen as a significant hit to the European domestic electric vehicle industry, as the company was the most developed battery manufacturer on the continent.
Northvolt AB produces lithium-ion, lithium-metal and sodium-ion cells for e-mobility and energy storage, amongst other purposes. The company’s flagship battery gigafactory, Northvolt Ett, is located in Skellefteå, Sweden.
The move comes as the battery maker struggled to secure rescue funding, resulting in the company having only one week’s worth of cash remaining, which came up to about $30mm (€28.81mm). In contrast, Northvolt AB’s debt amounted to around $5.84bn (€5.61bn).