Following Northvolt’s announcement on September 23 regarding business contraction and layoffs, along with the suspension of the Northvolt Ett expansion project, its subsidiary, Northvolt Ett Expansion AB, filed for bankruptcy on October 8 in Stockholm District Court.
This bankruptcy filing is based on the financial condition of Ett Expansion AB, which reportedly has debts ranging from 2 billion to 3 billion Swedish kronor (approximately $194 million to $290 million US). On the day of the filing, the subsidiary faced a debt default of about 459,000 Swedish kronor (approximately $44,155 US) and was subject to claims for overdue bills totaling 47 million kronor (approximately $4.52 million US).
The battery expansion project was initially set to double the production capacity of the superfactory in northern Sweden, but the group’s board canceled the project last month. All work on the expansion is now halted with no employees remaining, and all construction and financing-related matters will be managed by the bankruptcy trustee.
Ett Expansion AB is one of 20 entities under the Northvolt group, and its bankruptcy is unrelated to any other legal entities or operations of the Northvolt group. Currently, Northvolt Group is focusing on completing the first phase of capacity construction for Northvolt Ett and fulfilling commitments to its automotive clients.
According to Reuters, Northvolt has previously secured over $10 billion (US) in equity and debt financing from investors, including Volkswagen, Goldman Sachs, and BlackRock. Earlier this year, Northvolt also secured a $5 billion green loan from lenders to fund the large-scale expansion in Sweden, but the cancellation of the project last month poses risks to these funds.
Source: WeChat Official Account—青蓝能源
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