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Northvolt Files For Bankruptcy Protection In US
- Northvolt, Sweden-based battery start-up, has filed for Chapter 11 bankruptcy protection in the US and will receive new financing of around $245m as part of the process.
- The reorganisation will allow Northvolt to restructure its debt, scale more appropriately to customer needs and secure a sustainable platform from which to operate.
- Northvolt will continue to operate all of its operations to meet its customers, vendors and employee needs.
- The Northvolt Ett, flagship gigafactory, will remain operational, as will Northvolt Labs in Sweden.
- As part of the restructuring process, the firm is expected to evaluate new investment opportunities from strategic, financial investors, existing lenders and customers.
- The bankruptcy filing marks a troubled period for the firm, which aims to provide a homegrown, European platform for battery production.
- Northvolt plans to raise between $1bn and $1.2bn to restore its business.
- Northvolt had talked with investors about securing around €200m ($218m, £167m) in funding last month.
- However, the talks reportedly stalled and the CEO of the Northvolt Ett Neijssen factory left the company soon after.
- Northvolt has raised around $10.57bn since its launch in 2016, and some believe it has raised as much as $15bn from investors including Volkswagen and Goldman Sachs.
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