Northvolt files for Chapter 11 in the U.S. Business will continue in the meantime
Northvolt "will continue to operate as usual during the reorganization", making deliveries and fulfiling obligations to customers. The Swedish company also states that "the Chapter 11 restructuring process in the U.S. is distinct from a bankruptcy or administration proceeding in Sweden or many other countries". Northvolt will be looking for possible new investors.
Northvolt files for Chapter 11 reorganization in the United States, allowing access to approximately $245 million in new financing, as stated in an official note. “By enabling the company to restructure its debt, appropriately scale the business to current customer needs and secure a sustainable foundation for continued operation, these Chapter 11 filings will help Northvolt to implement the decisions made as part of its strategic review to rescope the business and prioritize commitments to customers”.
Northvolt “will continue to operate as usual during the reorganization”, making deliveries and fulfiling obligations to customers. One of these is Scania, with CEO Christian Levin saying that they are still relying on Northvolt for the battery cells of some truck model, although looking for new possible suppliers.
Northvolt on the decision to file for Chapter 11
The Swedish company also states that “the Chapter 11 restructuring process in the U.S. is distinct from a bankruptcy or administration proceeding in Sweden or many other countries”.
Northvolt Ett, the company’s flagship battery gigafactory in Skellefteå, Sweden, and Northvolt Labs in Västerås, Sweden will remain operational as Northvolt ramps up production to meet commitments to its customers. Northvolt Germany and Northvolt North America, subsidiaries of Northvolt AB with projects in Germany and Canada, are financed separately and will continue to operate as usual outside of the Chapter 11 process as key parts of Northvolt’s strategic positioning.
“This decisive step will allow Northvolt to continue its mission to establish a homegrown, European industrial base for battery production. Despite near-term challenges, this action to strengthen our capital structure will allow us to capture the continued market demand for vehicle electrification. We are likewise pleased by the strong support we have received from our existing lenders and our customers”, said Tom Johnstone, interim Chairman of the Board.
Until the first quarter of 2025, Northvolt will evaluate proposals for new money investment.
