UPDATED: The future has long looked bleak for Swedish battery manufacturer Northvolt, and now it looks like it may soon be over. According to Reuters, the company's management has decided to file for bankruptcy because it has not been able to raise new capital to continue operations.
- After an exhaustive attempt to investigate all available ways to ensure a viable financial and operational future for the company, the board of directors of Northvolt has today filed for bankruptcy in Sweden, according to a press release.
The employees at Northvolt's factory in Skellefteå, Sweden, received the same message this morning. In total, the company is estimated to have 5,000 employees worldwide.
The extent of the crisis first became clear last summer, when it emerged that Northvolt was having problems meeting its contracts and making a profit from its operations. In September, the company announced 1,600 layoffs, and in November, Northvolt filed for bankruptcy protection. The debt of the parent company is twice as large as the assets, and the equity was minus 34.3 billion Swedish kronor at the turn of the year.
Several Danish pension companies have invested in Northvolt. This applies to ATP, Danica Pension and ATP. The German car manufacturer Volkswagen and the investment bank Goldman Sachs are also stuck with billions in bankruptcy.
The hope was that Northvolt could establish itself as a European alternative to the Chinese manufacturers of batteries for electric cars. The company invested heavily in new production facilities in Canada and Germany, among other places, but revenues did not grow to the same extent.
/ritzau/
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