Swedish battery maker Northvolt, once a leading player in Europe’s electric vehicle battery and energy storage markets, is now grappling with severe financial difficulties.
The company is reportedly considering filing for bankruptcy protection under U.S. Chapter 11 laws—or even declaring outright bankruptcy, according to sources.
The Financial Times reports that some major investors have already written down their stakes in Northvolt to zero.
"Chapter 11 is on the table, and bankruptcy is still a possibility," a source familiar with the matter revealed.
The company is grappling with a dire financial crisis, having failed to secure the approximately €870 million needed to stay afloat, according to CEO Peter Carlsson. Negotiations with potential investors for fresh capital injections have stalled, leaving Northvolt in a precarious position.
Financial Times sources indicate that time is running out, with a decision on whether to file for bankruptcy protection or proceed with bankruptcy expected as early as this week.
Northvolt’s largest investor, German automaker Volkswagen, is still a critical stakeholder. But BMW, another member of the ownership group, has already canceled a significant order, compounding the company's troubles.
Northvolt, once hailed as a pivotal player in Europe’s electric vehicle battery and energy storage sectors, now faces a pivotal moment in its history.
