Goldman Sachs Asset Management is in talks to join a consortium of investors to support cash-strapped Swedish battery manufacturer Northvolt.
According to insiders cited by Bloomberg, the U.S. bank’s investment arm, Northvolt’s second-largest shareholder, is actively involved in efforts to address the company’s liquidity challenges. However, any deal would hinge on participation from additional investors.
Northvolt is reportedly seeking around €200 million to cover short-term needs, with verbal commitments already securing about €150 million, according to Bloomberg. Despite these efforts, the company’s spokesperson declined to comment on the matter.
Earlier this week, Northvolt announced progress on its financing package and emphasized that it is working “intensively” on a proposal to resolve its financial issues. Co-founder Harald Mix confirmed that more than 1.5 billion Swedish kronor ($144 million) had been injected as fresh capital.
The battery manufacturer has faced increasing financial strain since the summer, exacerbated by BMW’s cancellation of a multi-billion-euro order for prismatic battery cells. BMW’s decision was attributed to Northvolt’s production delays and a shift toward round cells for the automaker’s next-generation electric vehicles.
CEO Peter Carlsson acknowledged that the company had been “a little too aggressive” with its expansion plans. Since then, Northvolt has made several strategic adjustments, including cutting 1,600 jobs and downsizing its research center in California.
Goldman Sachs’ involvement is seen as crucial to instilling confidence in other investors, particularly key stakeholders such as Volkswagen Group, which relies on Northvolt’s battery cells for its electric vehicles. A spokesperson for Scania, a subsidiary of VW, noted that the company is “in close dialogue with Northvolt” but declined further comment.
