Northvolt’s bankruptcy trustee said on Friday that “significant” progress had been made in efforts to keep the Swedish electric vehicle battery maker operational while negotiations with potential buyers continue.
Northvolt filed for bankruptcy in Sweden on March 12, marking one of the countryās largest corporate failures. The company had been viewed as a crucial part of Europe’s ambitions to develop a competitive battery industry to rival China.
Following the bankruptcy filing, Northvolt stated that its factory in northern Sweden would remain operational in the short term. However, the court-appointed bankruptcy trustee will decide whether production continues during negotiations over the companyās future.
“Maintaining certain operations is likely to be crucial in order to be able to sell the business in whole or in part,” Mikael Kubu, from judicial reorganization firm Ackordscentralen, said in a statement.
“We currently see the conditions for selling the business as a producer of battery cells as good,” he added.
The financial difficulties of Northvolt have raised broader concerns about Europeās ability to build a competitive battery manufacturing sector. Swedenās deputy prime minister has urged the European Union to adjust its clean-tech funding rules to help attract a new owner for the company.