Swedish battery manufacturer Northvolt assured Reuters on Thursday that it will be able to meet its tax obligations due on October 14, amid rising concerns over the company’s financial stability. This statement comes in response to widespread speculation about whether the cash-strapped firm could fulfill its tax payment commitments.
In September, Northvolt announced plans to downsize and reduce its workforce, raising alarms that Europe’s most promising homegrown electric vehicle battery manufacturer might face significant setbacks due to production challenges, declining demand, and increasing competition from Chinese manufacturers. Despite having rapidly expanded in recent years and securing over $10 billion in funding, Northvolt began to show signs of distress after German automaker BMW canceled a $2 billion order in June.
As speculation mounted regarding the timing of its next tax payment, the company clarified its position. “On the question of whether we will pay our taxes when they fall due on the 14th of October, the answer is the same as for other companies and is a simple ‘yes,'” a spokesperson stated late Thursday.
According to the Swedish Tax Authority, Northvolt is scheduled to pay a total of 287 million Swedish crowns ($27.59 million) on Monday. In light of its financial difficulties, the company is also reportedly looking to sell excess battery materials to generate cash. Earlier in the week, a Northvolt subsidiary filed for bankruptcy, and the head of its battery cell factory in Northern Sweden was replaced on Wednesday.
Source: Reuters
