Employees stroll on the location of the Northvolt Ett manufacturing facility in Scheleftea, northern Sweden on February 23, 2022.
Jonathan Nakstrand | Afp | Getty Photos
Swedish battery maker Northvolt has filed for Chapter 11 chapter safety within the US, dealing a significant blow to Europe’s electrification ambitions.
As soon as considered one of Europe’s most useful personal expertise corporations, the corporate on Thursday said voluntary chapter will enable it to restructure its debt, scale back its enterprise and supply a sustainable foundation for persevering with operations.
The agency famous that it’s going to proceed to function as regular in the course of the restructuring course of, which is predicted to be accomplished within the first quarter of subsequent yr.
A accomplice of main European automakers, Northvolt produces lithium-ion batteries for the booming electrical car trade, which has just lately been rocked by growing competitors.
“This decisive step will allow Northvolt to proceed its mission to create a neighborhood European industrial base for battery manufacturing,” stated Tom Johnstone, Northvolt’s Interim Chairman of the Board.
“Regardless of short-term challenges, this motion to strengthen our capital construction will enable us to seize continued demand within the car electrification market,” he added.
The Stockholm-based enterprise has lengthy been seen as Europe’s greatest hope for constructing a home-grown EV battery champion. Extra just lately, nonetheless, the corporate has struggled to remain afloat because it navigates a a major drive to cut costs.
