Swedish EV Battery Maker Northvolt Files for Chapter 11 in US, Secures $100M from Scania

Nov 21, 2024, 05:38 PM

Northvolt AB, a Swedish electric vehicle battery maker, has filed for Chapter 11 bankruptcy protection in the United States. This move comes after the company failed to secure financial support for its battery-cell business. Northvolt has been struggling with financial difficulties, missing production targets, and a slowdown in global demand for electric vehicles (EVs). The company's operations will continue as usual during the reorganization process, ensuring obligations to customers, vendors, and employees are met. Northvolt had received significant financial support from the Canadian and Quebec governments, with pledges amounting to $2.7 billion. Additionally, Scania has agreed to lend Northvolt $100 million under the Chapter 11 protection agreement.