Swedish battery manufacturer Northvolt confirmed on Monday that it has paid its October tax bill, in line with a company statement last week. The payment comes amid growing concerns over the company’s financial stability, with recent media reports speculating on its ability to meet obligations due to cash flow issues.
The Swedish Tax Authority had announced that Northvolt was required to pay 287 million Swedish crowns ($27.61 million) for the month of October. Northvolt had reassured the public on October 10 that it would meet the deadline. On Monday, the company reiterated its stance, stating, âWe have paid taxes, as we said we would,â although further details were not provided.
In recent months, Northvolt has shifted from being viewed as Europeâs leading hope for securing battery independence from China to a company struggling to raise capital and manage its expansion. Due to production difficulties and waning demand, the company has scaled back its growth plans and laid off staff.
According to sources, Northvolt is currently in discussions with investors and lenders to raise approximately 200 million euros ($219 million) in short-term funding. As of Friday, the company had reportedly received oral commitments for 150 million euros. Earlier this year, Northvolt aimed to raise as much as 1.5 billion euros, according to Swedish media reports.
Despite the financial hurdles, Northvolt stated that it has made “significant progress” in its efforts to secure the necessary capital to continue its operations and expansion efforts.
Source: Reuters
