Northvolt’s bankruptcy trustee announced on Monday that the electric vehicle (EV) battery manufacturer had reached an agreement in principle with key stakeholders to secure financial guarantees, allowing the company to continue operating on a reduced scale.
The Sweden-based battery firm, once considered Europe’s leading contender against China in EV battery production, filed for bankruptcy on March 12 in one of the country’s largest corporate failures.
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Under the restructuring plan, Northvolt will retain approximately 1,700 employees, a fraction of its original 5,000-strong workforce. Some additional staff will be employed in the company’s foreign subsidiaries, though specific details were not disclosed, according to Mikael Kubu of judicial reorganization firm Ackordscentralen.
“Despite major cutbacks, it is positive that the business can continue to some extent, which is probably crucial for being able to sell the business in whole or in part,” Kubu said in a statement.
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The agreement will be formalized in the coming days as efforts to find potential buyers or investors continue.
