Swedish electric vehicle battery manufacturer Northvolt has filed for bankruptcy in its home country.
The privately-held company, which has locations across Sweden, Germany, and Canada, said after an “exhaustive effort to explore all available means to secure a viable financial and operational future for the company” it still had no choice but to submit the bankruptcy filing.
Northvolt had been seeking financial support to continue its operations, while an ongoing Chapter 11 restructuring process got underway in November in the United States, and follows an announcement in January that an unnamed industrial group would be buying its industrial division.
The company reported that a Swedish court-appointed trustee will now oversee the bankruptcy, such as the the sale of the business, assets and any outstanding settlement.
“Like many companies in the battery sector, Northvolt has experienced a series of compounding challenges in recent months that eroded its financial position, including rising capital costs, geopolitical instability, subsequent supply chain disruptions, and shifts in market demand,” Northvolt wrote in a statement.
“Further to this backdrop, the company has faced significant internal challenges in its ramp-up of production, both in ways that were expected by engagement in what is a highly complex industry, and others which were unforeseen.”
