Swedish battery manufacturer Northvolt is making progress towards securing a new financing package, the company told Reuters on Monday. The battery maker has been in discussions with investors and lenders in recent weeks to obtain short-term funding as it seeks to stabilize its financial situation, according to three sources familiar with the matter.
Northvolt has begun gathering signatures for a financing package, which could exceed $300 million and may be announced by the end of the month, a person with direct knowledge of the deal said. The funding is expected to sustain the company through next year, the source added, speaking on the condition of anonymity as they were not authorized to speak publicly.
“We have made significant progress towards securing a finance solution for Northvolt, and we continue to have constructive dialogues with key stakeholders, including customers, suppliers, shareholders, and lenders,” a Northvolt spokesperson said in a statement to Reuters. “We are now working intensely to conclude our financing dialogues in a timely manner.”
Once seen as Europe’s leading hope for developing a home-grown electric vehicle battery industry, Northvolt has faced financial difficulties in recent months. The company has been grappling with production issues, weaker-than-expected demand, and increased competition from Chinese battery manufacturers, leading to job cuts and a scaled-back operational approach.
