Nov 22 2024: Stockholm-based battery manufacturer Northvolt has filed for Chapter 11 bankruptcy protection in the U.S., aiming to restructure its debt and secure financial stability. Despite the filing, operations at key facilities, including the Skellefteå gigafactory and Northvolt Labs in Västerås, Sweden, will continue without disruption.
The Chapter 11 filing, submitted to the U.S. Bankruptcy Court for the Southern District of Texas, will enable Northvolt to reorganize its finances and access $245 million in funding, comprising $145 million in cash collateral and $100 million in debtor-in-possession (DIP) financing from an existing customer.
The funds will support obligations to employees, suppliers, and customers while ensuring uninterrupted production. The reorganization follows a strategic review designed to align Northvolt’s operations with current customer demands while maintaining its long-term vision of fostering a European industrial base for battery production.
Interim Chairman Tom Johnstone described the move as vital for addressing immediate challenges and preparing for sustained growth. “This decisive step will allow Northvolt to continue its mission to establish a homegrown, European industrial base for battery production,” he stated, emphasizing the company’s readiness to meet the growing demand for electric vehicle electrification.
Northvolt’s projects in Germany and Canada are unaffected by the bankruptcy filing, as these operations are financed independently and remain integral to the company’s strategic goals.
The reorganization is expected to conclude by Q1 2025, with Northvolt Ett in Sweden continuing to play a critical role in reducing Europe’s dependence on battery imports from Asia. Legal and financial advisors for the proceedings include Kirkland & Ellis LLP, A&O Shearman, Mannheimer Swartling Advokatbyrå AB, and Rothschild & Co.
