Swedish battery manufacturer Northvolt has asked shareholders for $1.29 billion in funding over the next two years to stabilize its operations after filing for Chapter 11 U.S. bankruptcy in November, two sources familiar with the matter told Reuters. The funds are intended to sustain the company through 2027 while it works to secure long-term financing solutions.
Northvolt, regarded as Europe’s strongest contender against Chinese battery giants BYD and CATL, filed for bankruptcy after failing to secure new investments amidst production and operational challenges. Former CEO and co-founder Peter Carlsson previously said the company would require between $1 billion and $1.2 billion for its long-term survival. “We are navigating a difficult period, but we believe there’s a path forward with the right support,” Carlsson told journalists in November.
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In response to questions from Reuters, a Northvolt spokesperson said, “The company and its advisers are engaged in productive conversations and due diligence with both strategic and financial investors.” The spokesperson confirmed that “numerous parties” have shown interest in the financing process but declined to provide further details.
Northvolt’s shareholders, which include BMW, Goldman Sachs, Volkswagen, and Scania, were informed that the company’s cash reserves are expected to last until mid-to-late February. Sources said the company is also in discussions with Chinese, South Korean, and Japanese battery manufacturers as potential rescuers, given their expertise in electric vehicle battery technology.
See also: Northvolt Pursues Additional Financing to Support Bankruptcy Restructuring
The company had previously secured $245 million in interim financing, including a $100-million loan from Scania, its largest shareholder and customer. A longer-term financing proposal is anticipated to be presented to the bankruptcy court in the coming days, although Northvolt has not confirmed this timeline.