Europe's largest battery manufacturer, the Swedish company Northvolt, has declared bankruptcy. This is reported by Reuters.
But Northvolt itself said that the company has enough cash to support operations for about a week and that it has secured new financing in the amount of 95 million euros for the bankruptcy process. The company added that normal activities will continue during the bankruptcy.
"The liquidity picture of Northvolt has become terrible," it said in a statement filed with the U.S. Bankruptcy Court in Houston.
The company has debts of about 5.5 billion euros, but available funds are only worth almost 30 million euros.
Northvolt, which manufactures products in seven countries and employs about 6,600 people, said it plans to complete the restructuring by the first quarter of 2025.
Northvolt is the largest battery manufacturer in the EU, supplying European automakers and competing in this market with large Chinese companies CATL and BYD, as well as with long—established manufacturers - the Japanese company Panasonic and the South Korean Samsung.
In a few months, Northvolt has turned from a promising manufacturer of batteries for electric vehicles in Europe into a company trying to survive through cuts. The company faced production problems, the loss of large customers and a lack of funding. Europe hoped that it was Northvolt that would reduce the dependence of Western automakers on China.
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