The Investment Management Corporation of Ontario (IMCO) has written down its $400 million investment in Northvolt, becoming the latest shareholder to distance itself from the financially troubled battery manufacturer, Bloomberg reported on Monday, citing sources familiar with the matter.
IMCO, a Canadian pension fund, had purchased convertible bonds from Northvolt in 2023 to support the company’s expansion in battery cell production ahead of a planned stock exchange listing. However, IMCO declined to comment on the write-down, according to Bloomberg.
See also: Scania Steps In to Support Northvolt’s Struggling Battery Production
The Swedish battery maker has faced mounting financial difficulties, filing for creditor protection in the United States in November 2024. While Northvolt initially stated that its factories under construction in Canada and Germany would not be affected, it has since revised its expansion timeline, projecting delays of up to 18 months.
Northvolt’s financial strain has led to major setbacks, including BMW’s cancellation of a multibillion-dollar order due to delivery delays. Additionally, Traton’s Scania brand, which had planned to source all its battery cells for electric trucks from Northvolt, is reportedly seeking alternative suppliers.
See also: Northvolt Co-Founder Paolo Cerruti to Step Down as North American CEO
Northvolt is now in urgent need of fresh capital. In a January meeting, company executives indicated that existing funds would last only until mid-February and that approximately $1.29 billion in additional funding would be required by 2027.
The company’s struggles have prompted strategic reviews, cost-cutting measures, and management restructuring. Northvolt North America CEO Paolo Cerruti recently stepped down, adding further uncertainty to the future of its planned Northvolt Six factory in Quebec.