Northvolt faces bankruptcy

Northvolt, a Swedish vendor of traction batteries, has just filed for insolvency.

The startup firm has accumulated what amounts to $5.84 billion in debt while only having a petty $30 million left on the operational account – barely enough to run its factory for another week.

The reason for this dire financial situation partly lies in the company’s failure to deliver the goods on time. BMW concluded an agreement worth €2 billion with Northvolt several years ago, but never received a single battery pack and ultimately had to withdraw from the deal in June this year.

The struggling battery vendor says it is still hopeful that a restructuring in early 2025 brings it back on track. However, it will have to attract at least $900 million in new investments before it can proceed with this plan.