European Electric Battery Manufacturer Northvolt Undergoes Serious Crisis

The Swedish electric battery company Northvolt, which was supposed to be the European “champion” for the transition to a “green” automotive industry, has filed for bankruptcy protection in the United States.

On November 21, the company said it had enough money to sustain operations for just a week and that it had secured $100 million in new financing for the bankruptcy process.

“Northvolt’s liquidity picture has become catastrophic,” the company, which filed for Chapter 11 in Houston bankruptcy court, said in a statement. The company also operates in California, where it has research and development centers and about $5.8 billion in debt.

Northvolt has 6600 employees in seven different countries, and as early as September, the company announced it was laying off 1600 people and now announces that it plans to complete a company restructuring by 2025 while maintaining its operations.