Tom Johnstone, interim Northvolt CEO.
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.
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.