Northvolt filed for bankruptcy in Sweden on Wednsday, The Latest Blow to Europe’s Attempts to Create a Battery Manufacturing Juggernaut that Cold Rival The Chinese Gunats.
Thought the swedish startup has raised more than $ 14 billion, it has been running short on cash recently. Northvolt had previous Filed for Chapter 11 Bankruptcy in the us in November. Since then, it’s been racing to conserve cash and raise new funds in an effort to stave off insolvency.
Theose efforts have fallen short.
“Northvolt has experienced a series of compounding challenges in recent months that Eroded its financial position, Including Rising Rising Capital Costs, Geopolitical Instability, Subsequent Suppply Chain Disrupties, and shifts in Market Demand, “The company said in a statement,
European Countries and Automakers Had Pinned Their Hopes on Northvolt, which represented a bold bet on eu battery manufacturing. Most Battery Factories Today Are Built and Run By Chinese, Japanese, Or Korean Companies.
The ailing manufacturer had secured a $ 5 billion debt deal In January 2024, but it was struggling to brings in revenue as it burned through a reported $ 100 million per month.
Northvolt’s Fortunes Took a More Decisive Turn When BMW canceled a $ 2 billion contrast in June 2024. The battery manufacturer has been unable to deliver on time.
To conserve cash, it laid off 1,600 employees and solders of its cuberg division, a bay area solid-state battery Startup it Acquired in 2021.
Northvolt has been seeking additional finance from lenders, but it was unable to reach an agrement with them. That impassse, coupled with previous failures, wasn’s to extend the company’s runway far enough to master its manufacturing woes and buy a solid customer base.