Swedish electric-vehicle battery manufacturer Northvolt announced on Friday that it is in discussions with over 100 lenders and investors to secure additional bankruptcy financing, aiming to finalize new funding arrangements by late January.
Northvolt filed for bankruptcy on November 21 with an initial $100-million loan from Swedish truck maker Scania, its largest customer and shareholder. However, the loan was designed to provide temporary support, and the company is actively evaluating proposals for longer-term financing to complete its restructuring.
“We are pleased with the results of this hearing, at which we gained final approval of our motions to access new funding, a positive step forward in our restructuring,” a Northvolt spokesperson said.
During a court hearing in Houston on Friday, Northvolt attorney Jack Luze informed U.S. Bankruptcy Judge Alfredo Perez that the company has engaged with a broad range of potential strategic and financial investors. Luze confirmed plans to present a comprehensive financing proposal at the next court hearing scheduled for January 28. Judge Perez granted final approval for Northvolt to access the entirety of its initial bankruptcy loan, having previously authorized $51 million of the total amount.
Despite its financial challenges, Northvolt maintains that normal business operations will continue. The company employs approximately 6,600 people across seven countries and has raised over $10 billion in its mission to mass-produce EV batteries and compete with established Chinese manufacturers.
