Swedish battery maker Northvolt AB has filed for bankruptcy protection for one of its subsidiaries, Northvolt Ett Expansion AB, as it grapples with a deepening liquidity crisis. The move comes after the company suspended expansion plans at its flagship plant in Skelleftea, northern Sweden last month.
The subsidiary, which had no direct employees, was responsible for managing the construction project at the Skelleftea plant. A Northvolt spokesman stated that the company had been working for weeks to find an alternative solution, but ultimately had to file for bankruptcy.
This development marks a significant setback for Northvolt, which has received approximately $10 billion in debt and equity funding since its founding in 2017. The company now faces a tax bill of about $28 million due on October 14, potentially its next liquidity test.
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The bankruptcy filing is part of broader measures to stabilize Northvolt’s finances. The company has also slowed projects in Germany and Canada, which were previously fast-tracked to build manufacturing scale to compete with Chinese producers.
While the bankruptcy filing is limited to the Ett Expansion subsidiary, it carried substantial liabilities, including $58.2 million in supplier debt and $31.2 million owed to other group companies.
Northvolt maintains that the filing does not affect other entities within the group and expressed its intention to maintain working relationships with suppliers. The company is currently engaged in a financing process and strategic review aimed at strengthening its core business.
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