The application doesn’t relate to any of the other legal entities in the wider group
Northvolt Ett Expansion AB, with no direct employees, was managing construction of the expansion project at the plant in Skelleftea, according to a statement on Tuesday. The company said the application for bankruptcy doesn’t relate to any of the other legal entities in the wider group.
The Ett Expansion unit had assets worth 10 billion Swedish kronor (US$968 million) at the end of 2023, according to court documents seen by Bloomberg News. Northvolt declined to comment on its debt levels.
The build-out of Northvolt Ett was suspended last month as part of a package of wider measures to stabilize the company’s finances. The battery maker faces a liquidity crisis after a production ramp-up faltered at its main plant near the Arctic Circle.
The unit’s bankruptcy filing underscores the urgency of the liquidity crisis at Northvolt, which has received about US$10 billion in debt and equity funding since being founded in 2017.
The subsidiary filing for bankruptcy had debt registered with the Enforcement Agency in Sweden totaling 460,000 kronor (US$44,500)— an amount that was falling due on Monday, according to a report by Swedish news magazine Affarsvarlden.
The company said a bankruptcy trustee will now manage all contact with the affected unit. The wider group “continues to be in dialog with stakeholders for continued cooperation within Northvolt Group’s ongoing operations,” it said.
With assistance from Niclas Rolander and Christopher Jungstedt