Kristina Sundin Jonsson
UPDATE: Wednesday, 15:40
The government called a press conference on Wednesday afternoon following Northvolt's bankruptcy announcement.
– This is an extremely tough announcement and a difficult day for everyone affected by this. Northvolt and their employees have had a tough and uncertain time for a while. Today comes the sad announcement that many of us have been working to try to avoid, says minister of industry Ebba Busch. She says that the bankruptcy trustee hopes to keep production going.
– We hope to be able to keep operations running as uninterrupted as possible. So that we don't lose staff and the company doesn't lose value.
The government has been in dialogue with the municipalities of Västerås and Skellefteå and the relevant authorities. Dialogues have also been held with Canada and Germany. Ebba Busch has raised the issue at the European level, most recently at the Competitiveness Council.
– It is taking place in Brussels today. It is about the need for European battery production. There is an industrial war going on where Europe risks being squeezed between giants outside our union that do not act according to fair rules, she says.
To all those who work at Northvolt, we have great understanding for the turbulence and anxiety that prevails on a day like this, says minister of labour and integration Mats Persson.
– It's a tough message, but Swedish society is built to handle these kinds of crises.
– Society is now activating all support and all security systems. Anyone affected by this bankruptcy will not be left without help. Society is gathering strength to help people in transition.
There is support available, says Persson.
– One such support is the state wage guarantee, and it means that the state steps in and pays wages and other benefits to employees.
– The starting point is that you shouldn't have to leave your house or home, but you should be able to feel safe at the moment.
UPDATE: Wednesday, 13:50
Reaction from municipality leaders:
City manager, Kristina Sundin Jonsson says that a crisis committee has been put together.
What will they do?
– Coordinate, monitor, follow up on the responsibilities of other authorities.
– We will meet daily and work much like we did in the pandemic, together with other stakeholders.
– We are in a very tough situation now. But if we continue to work together and, above all, the national government steps up, we can strengthen Swedish and European competitiveness.
– We have worked incredibly hard for a long time in Skellefteå to turn depopulation into development. It is incredibly sad that things are going this way now. We hope for a new solution with new owners soon, so that continued development can take place.
– We consider this a crisis. From the municipality's side, the efforts carried out together with the region and the county administrative board have been important. We have guided those who need help to the right bodies, carried out campaigns to lower the thresholds, carried out matching events. We will continue with activities, and we have good cooperation with various actors.
Lorents Burman, Skellefteå mayor, says:
Lorents Burman (S), mayor.
– The scale of the bankruptcy is very large. The first and largest in Europe was Northvolt when it was established seven years ago. It became the green showcase for the transition in Europe.
– Now we need to act at all different levels to create the conditions for the future. The government has a crucial responsibility and must be ready to act based on the expectations that exist in Skellefteå, the county, Sweden and Europe at large.
UPDATE: Wednesday, 13:25
At the Northvolt press conference, a reporter from SVT had the chance to ask ex-CEO Peter Carlsson a question, a question that read:
– Many are losing their jobs, many have travelled all over the world to work in Skellefteå, and pension funds have lost six billion. You have made 200 million kronor on this, and are one of the few who have made money on Northvolt. How does it feel today?
Northvolt's former CEO then responded:
– Today I don't want to comment on this. I think it's an incredibly stupid question.
Carlsson stormed out of the press conference, and when Norran's reporter Melker Westerberg tried to get an answer as to why it was a stupid question, Carlsson waved the question away and closed the door behind him.
UPDATE: Wednesday, 12:05
Bruno Cantin is one of thousands of employees at Northvolt's factory who now doesn't know what to expect.
– We have to pay our bills, our rent, and now we wonder if our very last salary payment will even come, he tells Norran's reporters at the Northvolt gates.
Bruno comes from Brazil and was recruited to Northvolt two years ago, when he was working in Ireland.
How does it feel?
– Pretty bad, we didn't expect this. The information just two weeks ago was that things were going great, that things were going better. They hired new people, and then suddenly today this comes. We are surprised.
How are the staff doing - right now, inside Northvolt?
– Really badly, as you would expect, many in here are completely dependent on their work visas, about 3,000 people. People who don't know what they're going to do now and who don't know if the very last paycheck is coming at all.
He doesn't know what's happening now.
– I don't know, I have to pay my bills and my rent. We don't know what's going to happen, but we'll probably get a lot of information, and we'll just have to improvise.
How has it been handled by Northvolt?
– Really badly. There has been a huge lack of experience and competence. This could have been avoided. Ambitions were high, hopes were high. I have worked in factories all over the world, but I have never seen anything like this.
UPDATE: Wednesday, 11:50
Anders Sundström, former Social Democratic Minister of Industry and Commerce and businessman says it is a day of sorrow.
Anders Sundström.
– The most serious thing is that Sweden, Germany and a few other countries in Europe are completely dependent on cars, trucks, forklifts, excavators, backhoe loaders, drilling rigs, etc. The future of that is based on us being able to electrify these vehicles. If Europe does not manage to keep manufacturing or knowledge of battery manufacturing within its borders, we are facing a setback similar to when Sweden lost its shipyards in the 70s.
– It is very, very serious if we do not keep the technology within Northern Europe.
He sees three options now:
That a Chinese company buys Northvolt's bankruptcy estate.
That Volkswagen does it.
A complete shutdown of operations.
The most likely alternative, says Sundström, is for Volkswagen to step in and buy up the bankruptcy estate.
– That would perhaps be the best option. Together with Northvolt, they have invested in a factory in Germany that is a twin to the Skellefteå factory. Now that twin has not come as far. But all the knowledge there comes from Västerås and Skellefteå, says Sundström. There may of course be another vehicle manufacturer that might consider buying the bankruptcy estate.
– I don't know how Volvo AB is reasoning, they have planned for a battery factory in Mariestad, but it has been paused. He says he knows that there are Chinese people interested in buying Northvolt but that it will likely be blocked by the Swedish state.
– When it comes to keeping Chinese interests out regarding matters concerning national security, it is absolutely right, says Sundström, but believes that in the case of Northvolt this is not the case and keeping the Chinese out risks backfiring on Europe's interests.
– It's about Volvo, Scania or Volkswagen buying their batteries in China or from Chinese companies that manufacture the batteries in Europe. I can't see that the latter is worse than buying the batteries directly from China. Because that's the most likely option.
Sundström does not think it is unlikely that there will be a total closure where 5,000 jobs will go up in smoke.
– It could end up so badly. Partly with the negative attitude towards China, the enormous anxiety that comes with the trade war between the US and Europe, and quite strong political forces that don't think the climate is that important, says Sundström.
He believes that electrification is progressing more slowly than was thought a few years ago. – In the worst case, it ends very, very badly. In the best case, someone picks it up and does a proper restart.
UPDATE: Wednesday, 11:40
Dongjin Sweden is to make all its Skellefteå employees redundant. The company announced this in a press release.
"The choice has not been easy, but necessary to adapt the company to changing market conditions," the company writes.
Dongjin Sweden has 25 employees at its 6,000 square meter factory in Hedensbyn.
“We understand that this is a difficult time for everyone involved, and we will do our best to support our employees through the process,” says plant manager Youn Geun Lee.
Dongjin Sweden has been a key supplier to Northvolt Ett. The company previously told Norran that they had hoped to have around a hundred employees in Skellefteå.
UPDATE: Wednesday, 11:35
Region Västerbotten has also sent a press release after Northvolt's bankruptcy.
In it, the region writes that approximately 3,000 employees in Skellefteå are affected by the bankruptcy.
– It is a very difficult situation for everyone affected by the bankruptcy, and we will use all our available resources to support those affected. We continue to have firm faith in Skellefteå and Västerbotten as leaders in the green transition. Our county has an enormously strong tradition of innovation-driven industry, and we have unique conditions with green energy, natural resources and a strong entrepreneurial spirit, says Rickard Carstedt, regional councilor (S), Region Västerbotten.
Region then writes further:
– We are working purposefully to strengthen Skellefteå and Västerbotten. The green transition continues, and our region has the best conditions to be a driving force and pioneer for sustainable growth in Sweden and Europe. Region Västerbotten continues purposefully to support the business community here and now, while we work to develop the region's long-term potential.
UPDATE: Wednesday, 11:30
Bankruptcy expert: Sad for everyone—but not unexpected
Northvolt's bankruptcy was not unexpected, given its substantial debts, according to Marie Karlsson Tuula, professor of civil law at Linnaeus University and a bankruptcy expert.
– Unfortunately, no. Already last autumn I questioned why they opted for an expensive chapter 11 process instead of a Swedish restructuring. There was no profitability. But this is a significant disappointment, especially for the ordinary people who believed in the company, she says.
Has the company squandered their remaining funds on the chapter 11 process?
– It's difficult to avoid that conclusion, that's the reality. It was unnecessary, as profitability is essential regardless of location.
What happens now?
– First, the court determines insolvency, and upon declaring bankruptcy, the decision is immediately effective. A bankruptcy trustee is then appointed, and all other parties are removed from business operations.
Does this mean closures and employee layoffs?
– Theoretically, the bankruptcy trustee can choose to continue operations, but they must prioritise the creditors' interests and maximise asset recovery. There may also be potential buyers awaiting bankruptcy to acquire assets at a lower cost, but it's difficult to predict, says Marie Karlsson Tuula.
UPDATE: Wednesday, 10:47
Northvolt's chairman Tom Johnstone held a press conference at the head office in Stockholm at 10 a.m. on Wednesday.
Norran's Melker Westerberg was present. At the press conference, Johnstone stated that the bankruptcy will affect 4,500-5,000 people; according to Norran's information, 3,000 work at the factory in Skellefteå.
– We want to apologise to the people of Skellefteå, you have been fantastic to us, says Johnstone, who also said that the company is in dialogue with the municipality about what will happen in the future.
UPDATE: Wednesday, 10:18
An employee at Northvolt says that at eight this morning they received a call for a meeting on Teams an hour later.
cIf you worked in the evening or at night, you didn't know there was going to be a meeting, and therefore you missed it. So terribly poorly managed. One hour's notice was all you got and as usual you find out everything in the media first, says the employee.
How do you feel now?
– I don't know how I feel. On the one hand, it feels good that the decision has been made and that we can possibly move forward with new owners. But on the other hand, there is the uncertainty about what will happen now.
– We have been asked to come in and work as usual today. It feels strange that we are expected to just continue working as if nothing has happened.
UPDATE: Wednesday, 10:12
Northvolt has halted production for today, according to DI. The company intends to resume operations tomorrow, Thursday.
"Production has been largely suspended until tomorrow morning to allow employees time to receive information and process the situation," Northvolt's press manager, Erik Zsiga, told DI. The decision regarding future production rests with the bankruptcy trustee, he added.
UPDATE: Wednesday, 10:00
Ardalan Shekarabi (S), labour market policy spokesperson on Northvolt's bankruptcy filing:
Ardalan Shekarabi (S)
– It is a dark morning for Sweden, he says and continues:
– Now the government needs to step forward; we can't abandon Skellefteå. It is in the interest of all of Sweden, and it is the state's responsibility to do what the state can to support in this situation.
Could you elaborate?
– The state needs to sit down with Skellefteå municipality to ensure the skills available in Skellefteå do not disappear and so that unemployment does not increase more than necessary. This is an extraordinary situation.
Ardalan also says that the warning signals have been there for several months, but that nothing has happened and believes that this is a state matter.
– But we are not seeing any such signs right now, instead in recent months they have taken a step back.
What can the state and Sweden do now?
– It must be done in consultation between Skellefteå municipality, the company and the government, and we are open to supporting where needed, he says.
UPDATE: Wednesday, 09:35
The bankruptcy announcement affects approximately 1,800 IF Metall members. The union is now dedicating all its resources to Northvolt.
"IF Metall's immediate priority is to support and assist our members as they navigate this process. Once the initial phase of this work is complete, we will address the numerous questions surrounding how these events unfolded. Clearly, significant errors were made, and our members are now bearing the consequences. We must determine where the responsibility lies," states IF Metall's union chair, Marie Nilsson, in a press release.
The union is reinforcing its local organisations in Västerås and Skellefteå.
"Our members at Northvolt have endured an incredibly challenging period since September, when the company's financial difficulties became evident. Many have already lost their jobs, and those who continued working during the restructuring have faced constant uncertainty. The hope that Northvolt could achieve viability now appears to have vanished," says Marie Nilsson.
UPDATE: Wednesday, 09:25
Unions comment:
– We have now been informed by Northvolt that they have filed for bankruptcy in Sweden. This is, of course, a heavy blow and a very dark day for all of us who have worked hard every day and hoped that the company would make it through this tough time, says Shaneika Jeffrey, vice chair of Unionen at Northvolt Ett in Skellefteå.
Sveriges Ingenjörer, which represents around 650 of the affected employees, describes the news as "devastating."
– This is a tough message for our members, who have worked tirelessly to save the company. For the green transition and Swedish competitiveness, it would be disastrous if the investments and expertise gained were not preserved. Europe needs world-class battery manufacturing, says Ulrika Lindstrand, president of Sveriges Ingenjörer.
UPDATE: Wednesday, 09:00
Northvolt's interim chairman Tom Johnstone will make a statement and take questions from the media at Northvolt's office in Stockholm after the bankruptcy announcement.
The press conference starts at 10:00.
Tom Johnstone, interim Northvolt CEO.
UPDATE: Wednesday, 08:55
In response to today's bankruptcy announcement from Northvolt, Skellefteå municipality, Länsstyrelsen Västerbotten and Region Västerbotten have called a press conference.
The invitation states that they will "collectively answer questions about the work and role of the municipality, Länsstyrelsen Västerbotten and Region Västerbotten."
Participating are Lorents Burman (S), Chairman of the Municipal Board, Skellefteå Municipality, Helene Hellmark Knutsson, County Governor of Västerbotten, Richard Carstedt (S), Regional Councilor, Region Västerbotten, and Kristina Sundin Jonsson, Municipal Director, Skellefteå Municipality.
The press conference starts at 12:00 and Norran English will report on it.
UPDATE: Wednesday, 08:15:
Following an exhaustive effort to explore all available means to secure a viable financial and operational future for the company, the board of sirectors of Northvolt AB today announced that it has filed for bankruptcy in Sweden.
Like many companies in the battery sector, Northvolt has experienced a series of compounding challenges in recent months that eroded its financial position, including rising capital costs, geopolitical instability, subsequent supply chain disruptions, and shifts in market demand. Further to this backdrop, the company has faced significant internal challenges in its ramp-up of production, both in ways that were expected by engagement in what is a highly complex industry, and others which were unforeseen.
Despite pursuing all available options to negotiate and implement a financial restructuring, including a Chapter 11 restructuring process in the United States, and despite liquidity support from our lenders and key counterparties, the company was unable to secure the necessary financial conditions to continue in its current form. The board therefore determined that this is the only available solution while the company pursues all realistic options to obtain financing to continue operating during the Swedish bankruptcy process.
It should be underscored that in engaging in this process, the company found significant traction with potential partners and interest from investors — something which illustrates the strong underlying value and future potential of Northvolt and is testament to its accomplishments. Ultimately, however, with limited time and financial resources available, the company was unable to conclude the necessary agreements to secure its future.
Following the filing, a Swedish court-appointed trustee will now oversee the process, including the sale of the business and its assets and settlement of outstanding obligations. The process will be conducted in accordance with Swedish insolvency law, with a focus on ensuring an orderly transition for employees, partners, and creditors. Northvolt has nominated Mikael Kubu as Trustee.
The entities Northvolt AB, Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB and Northvolt Systems AB filed with the Swedish court. Northvolt Germany and Northvolt North America are not filing for bankruptcy in their respective jurisdictions. As wholly owned subsidiaries of Northvolt AB, any decisions regarding these entities will be made by the court-appointed trustee of Northvolt AB in consultation with the Group’s lenders at the appropriate time.
Northvolt recognizes the significant impact of this outcome on its employees, suppliers, customers, and other stakeholders. The company is working closely with relevant authorities, trade unions, and partners to ensure that employees receive the support and information they need during this transition.
Tom Johnstone, interim chairman of Northvolt’s board of directors, commented: “This is an incredibly difficult day for everyone at Northvolt. We set out to build something groundbreaking — to drive real change in the battery, EV and wider European industry and accelerate the transition to a green and sustainable future. The outcome is especially hard considering not only the level of engagement and interest we held with potential partners and investors in recent months, but also the clear improvement and upwards trajectory that we have been seeing in Northvolt's production in Skellefteå, where cell output from serial production lines has doubled and we have secured a 50% improvement in production yield since September.”
“Through the recent months, Northvolt has refocussed its operations and reached several achievements. We ramped up production to meet customers’ needs, reduced operational cash outflow by 55%, made tough decisions to pause or delay expansion plans, completed divestitures and ultimately delivered our first one million battery cells to a European customer. These battery cells are produced with 100% fossil-free energy and represent the most sustainable products of their type in the world. They are based on technology developed in Sweden and invented at Northvolt Labs, the most sophisticated battery R&D facility outside of Asia.”
“Northvolt has come a long way, and we are beginning to see the real outcomes of our work, including production line improvements that helped customers bring more electric vehicles to the market more quickly. For me personally, it remains key for Europe to have a homegrown battery industry, but it is a marathon to build such an industry. It needs patience and long-term commitment from all stakeholders.”
“We are hopeful that the outreach we have undertaken with potential investors during the Chapter 11 process will accelerate identifying the necessary financing to allow continued trading under the Swedish bankruptcy process. The passion, dedication, and innovation of our team has been nothing short of extraordinary, and we deeply regret that there is not a different path forward. I want to extend my strongest gratitude to our employees, customers, suppliers, investors, and partners who believed in Northvolt’s mission. I also want to extend the same gratitude for all the support we received from the communities in Skellefteå and Västerås.”
Tom Johnstone concluded: “We are hopeful that the foundation we built — the technology, the expertise, and the commitment to sustainability — will continue to drive change in the industry.”
As the bankruptcy process unfolds, the court-appointed trustee will determine the future of Northvolt’s businesses and their assets, including technology and production facilities. Further updates will be provided by the trustee as the process progresses. For any inquiries regarding the process, stakeholders are encouraged to contact the trustee’s office once appointed.
UPDATE: Tuesday, 21:40
On Tuesday evening, reports spread quickly that battery manufacturer Northvolt may be nearing bankruptcy, with Dagens Nyheter being the first to report it. Two independent sources told DN that Northvolt plans to file for bankruptcy on Wednesday if it fails to secure new capital on Tuesday.
According to DN, the company’s equity stood at minus 34.3 billion kronor at the turn of the year, and by March 12, Northvolt is due to pay 219.4 million kronor to the Swedish Tax Agency in preliminary tax, employer contributions, and withheld tax.
Northvolt applied for a reconstruction process in the USA in November. Archive image.
Norran also has its own sources confirming that a bankruptcy may be imminent.
– If we don’t secure funding during the evening, there will be no way to pay salaries and taxes this month, and bankruptcy will follow. It could happen as soon as tomorrow, says a source with insight.
In a social media group for Northvolt employees, one worker states that they overheard managers discussing an “imminent bankruptcy,” while others say their managers have dismissed the reports as “possibly fake news.”
One employee Norran spoke to wrote: "I haven’t heard anything from the company yet. But I guess we’ll be called to a Teams meeting tomorrow as usual."
Matti Kataja, Northvolt.
Norran attempted to confirm the information on Tuesday evening.
“We do not comment on rumors,” Northvolt’s press spokesperson Matti Kataja wrote in a text message to Norran.
TT received a similar response from the battery giant’s head of press, Erik Zsiga.
Kristina Sundin Jonsson, city manager of Skellefteå.
Norran has reached out to several representatives from Skellefteå municipality for a comment. Kristina Sundin Jonsson, Skellefteå’s city manager, says that nothing has been confirmed yet and that she cannot comment beyond what has been reported in the media.
– If a decision is made, we will most likely call a press conference, she says.
Dagens Nyheter’s article has spread quickly, both in traditional media and on social media.
According to DN’s sources, the bankruptcy threat applies to the entire battery manufacturer’s Swedish operations. The sources claim that, so far, only a small group within the company is aware of the impending decision.
Norran has also received information late Tuesday evening that investors have been on site at Northvolt recently and that there could be a sale or a larger investment. Norran is seeking more information about this.
Background
Northvolt’s crisis follows a year marked by delayed deliveries and difficulties in ramping up production volumes of high-quality batteries, which led to the German car manufacturer BMW withdrawing an order worth over 20 billion SEK in June last year.
Since September, the battery manufacturer has canceled several major projects, laid off a fifth of its workforce, and placed its subsidiary Northvolt Expansion—responsible for building a new battery factory—into bankruptcy with several billion in debt.
The top manager of the Skellefteå factory resigned in October, followed later by the company’s CEO, Peter Carlsson.
In November, the company filed for a restructuring process in the US, known as Chapter 11, but has continued to incur significant losses.