Following an exhaustive effort to explore all available means to secure a viable financial and operational future for the company, the Board of Directors of Northvolt AB today announced that it has filed for bankruptcy in Sweden.

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. 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.

Despite pursuing all available options to negotiate and implement a financial restructuring, including a Chapter 11 restructuring process in the United States, and despite liquidity support from lenders and key counterparties, the company was unable to secure the necessary financial conditions to continue in its current form. The Board therefore determined that this is the only available solution while the company pursues all realistic options to obtain financing to continue operating during the Swedish bankruptcy process.

The entities Northvolt AB, Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB and Northvolt Systems AB filed with the Swedish court. Northvolt Germany and Northvolt North America are not filing for bankruptcy in their respective jurisdictions.

Carl-Erik Lagercrantz, CEO of Vargas comments:
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“Despite the extraordinary efforts of Northvolt’s employees, management, and partners, the board has reached the difficult conclusion to file for bankruptcy for Northvolt. This is a sad moment for everyone involved.

Northvolt was founded with the mission of developing the world’s greenest lithium-ion battery and building an independent battery supply chain to accelerate the EU’s ambition of electrifying the automotive industry. Albeit this decision, I remain convinced that domestic European battery production is more critical than ever for our competitiveness. I hope the expertise and knowledge developed through Northvolt’s journey will continue to drive the green transition forward.”