Northvolt AB has signalled that its battery manufacturing operations will proceed as regular, whereas the corporate ramps up efforts to seek out new sources of funds beneath the US Chapter 11 restructuring course of.
Swedish electrical automobile (EV) battery producer Northvolt AB has revealed its shareholders have voted for operations to hold on as standard, whereas the corporate makes an attempt to safe new funds beneath the US Chapter 11 restructuring course of.
The shareholder vote, which happened in Stockholm this week, in a rare common assembly (EGM), was to resolve whether or not Northvolt AB ought to go ahead with the Chapter 11 course of or be liquidated. The restructuring is prone to be completed by the primary quarter of 2025.
Northvolt AB’s shareholders embrace numerous main corporations similar to Volkswagen, BMW, Baillie Gifford Funds, AMF, 4 to 1 Investments, Rocarma Consulting and Goldman Sachs Asset Administration. The corporate can also be reportedly in search of new traders to boost extra funds.
It submitted its Chapter 11 chapter submitting again in November 2024, laden down with money owed price about $5.8bn (€5.62bn) on the time. In distinction, on the time of submitting, Northvolt AB solely had roughly $30m (€29.10m) in money, which was anticipated to final per week.
The corporate manufactures lithium-ion, sodium-ion and lithium-metal cells for vitality storage and e-mobility, amongst different makes use of. Northvolt Ett, its flagship battery gigafactory is situated in Skellefteå, Sweden.
A Northvolt AB spokesperson stated in an e mail assertion: “Northvolt is happy with the outcomes of in the present day’s EGM, at which shareholders voted to affirm the continuation of Northvolt’s enterprise.
“It is a constructive end result that demonstrates the assist of our shareholders as we search to understand our ambition and maximise our worth. Northvolt continues to make progress within the restructuring course of whereas ramping manufacturing and executing on its transformation.”
EU’s battery ambitions take a success resulting from Northvolt points
Northvolt had been one of many EU’s most promising EV battery manufacturing corporations earlier than its monetary troubles struck. It was anticipated to considerably enhance the bloc’s probabilities of competing with different established EV rivals similar to China.
Nonetheless, the corporate has been coping with mounting manufacturing points, in addition to elevated competitors from China and decreased funding over the past a number of months.
One of many main causes for that is due to China’s tight grip on battery provide chains, particularly in relation to key metals similar to graphite and cobalt, whereas additionally being the most important world producer of lithium-ion batteries.
Chinese language EV makers in addition to battery producers additionally obtain subsidies from the federal government, which European governments have but to match. This has led to funding being a relentless concern for a number of European battery makers.
Europe can also be considerably behind different rivals in relation to EV charging infrastructure, together with creating its personal home battery manufacturing provide chain, which has left home battery makers with little assist infrastructure.