Northvolt Files for Bankruptcy, Secures $100M from Scania, Canada Pledges $2.7B for Quebec Plant

Nov 21, 2024, 09:30 PM

Northvolt, a Swedish manufacturer of battery cells for electric vehicles, has filed for Chapter 11 bankruptcy protection in the United States. The company, which has been a key player in Europe's ambitions to reduce reliance on Chinese battery technology, is facing financial difficulties due to production issues, the loss of a major customer, and funding shortages. Despite the bankruptcy filing, Northvolt has secured $100 million in new financing from Scania to support its operations during the restructuring process. The company's flagship battery gigafactory in Skellefteå, Sweden, and its labs in Västerås will continue operations to meet customer commitments. Northvolt's subsidiaries in Germany and Canada, which are financed separately, will operate as usual outside of the Chapter 11 process. The restructuring is expected to be completed by Q1 2025, with Northvolt evaluating proposals for new investment. Canada has pledged $2.7 billion to Northvolt for its Quebec battery plant, which will proceed despite the bankruptcy filing. Additionally, Northvolt's CEO, Peter Carlsson, has stepped down.