Swedish battery manufacturer Northvolt is filing a so-called Chapter 11 bankruptcy petition, a form of moratorium, in the US state of Texas. The company wants to be able to raise funds to improve its financial health.
Northvolt is a Swedish company focused on producing lithium-ion batteries for electric vehicles (EVs) and energy storage systems. The company was founded in 2016 by Peter Carlsson, a former Tesla executive, and Paolo Cerruti. Northvolt has positioned itself as a key player in the European battery manufacturing industry, aiming to accelerate the energy transition by offering sustainable, locally produced batteries.
EVs, industrial applications and energy storage
The company focuses on producing batteries for electric vehicles, industrial applications and large-scale energy storage. The company is also developing new battery technologies, which should include longer life and less environmental impact. In doing so, Northvolt sets itself the goal of making battery production as green as possible, including through the use of recycled materials and renewable energy in the production process.
Its first plant was Northvolt Ett in Skellefteå, Sweden, and has been operational since 2022. It is also working on a battery plant in Heide, Germany, and Quebec, Canada. In Gdańsk, Poland, Northvolt produces complete battery solutions for industrial applications and energy storage. It is headquartered in Volthouse, Sweden.
Disappointing EV sales
Northvolt is one of the parties hit hard by disappointing EV sales in Europe. Earlier, for instance, BMW cancelled a billion-dollar order with Northvolt and Scania postponed battery deliveries. This led to financial problems at Northvolt. It previously announced it was cutting its workforce and streamlining operations.
So now it appears that the company has filed a Chapter 11 bankruptcy petition in the US state of Texas. This is a legal process in the US in which a company applies for protection from its creditors to restructure its financial situation. Chapter 11 is often filed by larger companies that are in financial trouble, and want to continue operations through restructuring and reorganisation.
Author: Wouter Hoeffnagel
Image: Northvolt
