Swedish lithium-ion battery manufacturer Northvolt is reportedly considering bankruptcy protection under the U.S. Chapter 11 code as one of several options to navigate its financial struggles, according to two individuals familiar with the matter.
The company, once seen as Europe’s leading hope for a homegrown electric vehicle battery leader, has faced mounting difficulties due to production setbacks, the loss of a major customer, and stalled efforts to secure additional funding.
Northvolt, which has raised approximately €10 billion ($10.57 billion) since its establishment in 2016, initiated a comprehensive review of its strategy last July.
Swedish business publication Dagens Industri recently reported that Chapter 11 proceedings are under consideration as a potential pathway for financial restructuring.
Earlier in the week, the outlet noted that talks on a short-term funding deal with creditors, shareholders, and a customer had encountered significant delays, though discussions have reportedly resumed.
A Northvolt spokesperson refrained from commenting on bankruptcy considerations but reiterated the company’s ongoing exploration of various strategic options. “Since the beginning of the strategic review, we have constantly been discussing different options and that hasn’t changed throughout the process,” the spokesperson told Reuters, adding that updates will be shared once conclusions are reached.
