Swedish traction battery manufacturer Northvolt has finally decided to file for bankruptcy

By the end of November last year, it became clear that the Swedish company Northvolt, which had become the largest project for the production of traction batteries for electric vehicles in Europe, was forced to file for bankruptcy in the United States. Subsequent discussions of plans to save it did not change the situation, and now Northvolt has confirmed that it will go bankrupt – this time in Sweden, not the United States.

Image source: Northvolt

The company filed for bankruptcy in its historic home country of Sweden, after “exhaustive efforts to explore all possible options to secure a financial and operational future for the company,” according to its statement. Northvolt blames rising costs of accessing capital, geopolitical instability, supply chain disruptions, and changes in market demand for its demise. It also had difficulty ramping up production, and some of the challenges were unexpected by management.

In November, Northvolt filed for Chapter 11 bankruptcy in the United States, which allows for further reorganization of the business and continued operations. “Despite financial support from creditors and counterparties, the company was unable to create the necessary financial conditions to continue operations in its current form,” Northvolt explains its decision to file for bankruptcy in Sweden. A Swedish court-appointed bankruptcy trustee will oversee the bankruptcy process, including the sale of assets and the fulfillment of existing obligations.