Northvolt documents go bankrupt – Watt?

No one knows

Paul Homewood

Wake up and broke!

From Northvolt:

Stockholm, Sweden, March 12, 2025 – After exploring exhaustively all available means to ensure the company's viable financial and operational future, Northvolt AB's board of directors announced today that it has filed for bankruptcy in Sweden.

Like many companies in the battery industry, Northvolt has experienced a complex series of challenges in recent months that have eroded its financial situation, including rising capital costs, geopolitical instability, subsequent supply chain disruptions and shifts in market demand. Against this backdrop, the company faces significant internal challenges in the rise in production, which is expected by participating in the expectations of highly complex industries, as well as other unpredictable ways.

Despite all available options to negotiate and implement financial restructuring, including the Chapter 11 restructuring process in the United States, the company is unable to ensure that the necessary financial conditions continue in its current form despite liquidity support from our lenders and key rivals. Therefore, the board determined that this was the only solution available, while the company pursued all realistic options to obtain financing to continue operating during the Swedish bankruptcy process.

It should be emphasized that while participating in this process, the company found an important attraction to the interests of potential partners and investors – an illustration of Northvolt’s strong fundamental value and future potential, which proves its achievements. But, ultimately, with limited time and financial resources, the company cannot come up with the necessary agreements to determine its future.

After filing the documents, the trustee appointed by the Swedish court will now oversee the process, including the sale of the business and its assets and the settlement of outstanding obligations. The process will be conducted under Swedish bankruptcy law, focusing on ensuring an orderly transition to employees, partners and creditors. Northvolt has nominated Mikael Kubu as trustee.

Northvolt AB, Northvolt ETT AB, Northvolt Labs AB, Northvolt Revolt AB and Northvolt Systems AB are entities filed with the Swedish court. Germany's North Volt and North Volt North America did not file for bankruptcy in their respective jurisdictions. As a wholly owned subsidiary of Northvolt AB, any decision regarding these entities will be negotiated by the trustee of Northvolt AB appointed by the court in due course with the lender of the group.

Northvolt recognizes the significant impact this result has on employees, suppliers, customers and other stakeholders. The company is working closely with relevant authorities, unions and partners to ensure employees receive the support and information they need during the transition period.

https://www.mynewsdesk.com/se/northvolt/pressreleases/northvolt-files-for-bankruptcy-in-sweden-3374738

Obviously, the two main factors behind this bankruptcy are:

1. Europe lacks demand for electric vehicles
2. It is impossible to make profits with Chinese-made batteries

None of these two challenges was resolved soon.

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