Northvolt, the Swedish battery manufacturer, is reportedly close to finalizing a critical ‘rescue financing round’ of $300 million, aimed at stabilizing its financial situation. According to media reports, the company is expected to close the deal within the next week, although complexities in the documentation with customers, investors, and lenders may delay the finalization.
Bloomberg cites a source familiar with the matter, indicating that the financing will include both new equity and loans. This funding is crucial for Northvolt as it seeks to stabilize production and secure long-term financing options. The investment subsidiary of Goldman Sachs, alongside other investors, is reportedly involved in this rescue effort. Northvolt declined to comment on the situation.
In more positive developments, Scania, a truck brand under Volkswagen’s Traton Group, has announced that it plans to equip all its future electric vehicles with Northvolt batteries. Scania CEO Christian Levin stated, “We are now shifting over. For the future, all of our currently sold battery electric vehicles will come with Northvolt cells.” This partnership is expected to provide a significant boost to Northvolt during its restructuring phase.
Peter Carlsson, Northvolt’s CEO, expressed optimism about overcoming recent challenges, stating, “We are on our way out of our production hell. I think we have the toughest period behind us.” However, he did not specify when the production rate at Northvolt’s main plant in Skellefteå, currently operating at just 5-10% of its total capacity, would reach full capacity.
Volkswagen, Northvolt’s largest shareholder, has pledged to support the company in expanding its battery cell production. Levin emphasized Scania’s commitment to ensuring that Northvolt continues to deliver battery cells: “It lies in our interest to make sure they can continue to deliver cells to us, so we can continue to deliver vehicles to our customers where we have a customer contract.”
The situation for Northvolt has deteriorated significantly since the summer when BMW canceled a multi-billion-dollar order for battery cells, citing production delays. Following this, Northvolt Ett Expansion AB, responsible for the factory expansion linked to the canceled order, filed for insolvency. High-ranking managers from Audi and BMW confirmed that Audi had also withdrawn its order from Northvolt due to these complications.
Source: bnnbloomberg.ca
