Northvolt, the Swedish maker of battery cells for electric vehicles, has filed for Chapter 11 bankruptcy protection in the US, dealing a blow to Europ

Northvolt files for bankruptcy protection in blow to Europe’s EV ambitions

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2024-11-22 11:30:06

Northvolt, the Swedish maker of battery cells for electric vehicles, has filed for Chapter 11 bankruptcy protection in the US, dealing a blow to Europe’s hopes that its most developed battery player would reduce western carmakers’ reliance on Chinese rivals.

Northvolt said it had enough cash to support operations for only about a week and it had secured $100m (£80m) in new financing for the bankruptcy process. It said operations would continue as normal during the bankruptcy.

“Northvolt’s liquidity picture has become dire,” the company said in its Chapter 11 petition, filed in a bankruptcy court in Houston. Northvolt, which has operations in California, has about $30m in cash and about $5.8bn of debts.

The company, which employs about 6,600 staff across seven countries, expects to complete the restructuring by the first quarter of 2025.

In September, Northvolt said it would cut 1,600 jobs in response to “headwinds” blowing through the electric car industry.