Northvolt AB has signalled that its battery production operations will continue as normal, while the company ramps up efforts to find new sources of funds under the US Chapter 11 restructuring process.
Swedish electric vehicle (EV) battery manufacturer Northvolt AB has revealed its shareholders have voted for operations to carry on as usual, while the company attempts to secure new funds under the US Chapter 11 restructuring process.
The shareholder vote, which took place in Stockholm this week, in an extraordinary general meeting (EGM), was to decide whether Northvolt AB should go forward with the Chapter 11 process or be liquidated. The restructuring is likely to be finished by the first quarter of 2025.
Northvolt AB’s shareholders include a number of major companies such as Volkswagen, BMW, Baillie Gifford Funds, AMF, 4 to 1 Investments, Rocarma Consulting and Goldman Sachs Asset Management. The company is also reportedly looking for new investors to raise more funds.
It submitted its Chapter 11 bankruptcy filing back in November 2024, laden down with debts worth about $5.8bn (€5.62bn) at the time. In contrast, at the time of filing, Northvolt AB only had approximately $30m (€29.10m) in cash, which was expected to last a week.
The company manufactures lithium-ion, sodium-ion and lithium-metal cells for energy storage and e-mobility, amongst other uses. Northvolt Ett, its flagship battery gigafactory is located in Skellefteå, Sweden.
A Northvolt AB spokesperson said in an email statement: “Northvolt is pleased with the results of today’s EGM, at which shareholders voted to affirm the continuation of Northvolt’s business.
“This is a positive outcome that demonstrates the support of our shareholders as we seek to realise our ambition and maximise our value. Northvolt continues to make progress in the restructuring process while ramping production and executing on its transformation.”
EU’s battery ambitions take a hit due to Northvolt issues
Northvolt had been one of the EU’s most promising EV battery manufacturing companies before its financial troubles struck. It was expected to significantly increase the bloc’s chances of competing with other established EV rivals such as China.
However, the company has been dealing with mounting production issues, as well as increased competition from China and decreased funding over the last several months.
One of the major reasons for this is because of China’s tight grip on battery supply chains, especially when it comes to key metals such as graphite and cobalt, while also being the biggest global manufacturer of lithium-ion batteries.
Chinese EV makers as well as battery manufacturers also receive subsidies from the government, which European governments have yet to match. This has led to funding being a constant issue for several European battery makers.
Europe is also significantly behind other competitors when it comes to EV charging infrastructure, along with developing its own domestic battery production supply chain, which has left domestic battery makers with little support infrastructure.
