Swedish battery manufacturer Northvolt announced that its subsidiary, Northvolt Ett Expansion AB, has filed for bankruptcy. The filing comes after the company’s decision to suspend the Northvolt Ett Expansion project, which was intended to increase production capacity at its main plant in Skellefteå, Sweden.
Northvolt Ett Expansion AB submitted the bankruptcy filing to the District Court of Stockholm on October 8, 2024. According to a press release, the subsidiary has “no direct employees” and was responsible for managing construction efforts at the Skellefteå plant. The decision was attributed to the financial situation of Ett Expansion AB.
The suspension of the project, initially announced on September 23, was part of Northvolt Group’s refocus of its operations in Sweden. This led to the layoff of approximately 1,600 workers across three locations: Skellefteå (1,000), Västerås (400), and Stockholm (200). All work related to the expansion project has since been halted, and the subsidiary’s future dealings will be handled by a bankruptcy trustee.
Despite the bankruptcy, Northvolt made it clear that the broader company remains unaffected. “This development only affects Northvolt Ett Expansion AB,” the company noted, adding that the Northvolt Group, consisting of over 20 entities, remains operational. “Looking forward, the Northvolt Group is concentrating its resources towards accelerating production in large-scale cell manufacturing within the fully-built, first phase of Northvolt Ett and delivering on commitments to its automotive customers,” the company said in the statement.
