Swedish battery developer and producer Northvolt has sought chapter safety in the US, a transfer that coincided with the resignation of its founder and CEO, Peter Carlsson, a former senior government at Tesla.
This choice is critical as Northvolt was thought of a key participant for Western electrical automobile producers aiming to reduce their dependence on Chinese language battery producers. Regardless of efficiently elevating over $10 billion, the corporate struggled to safe long-term contracts with main automakers and confronted intense competitors from Chinese language rivals.
Northvolt produces a wide range of battery merchandise, together with lithium-ion and sodium-ion cells, electrical car batteries, and methods for standalone vitality storage. Final 12 months, the corporate introduced a breakthrough in sodium-ion battery know-how, claiming it will assist less expensive and sustainable vitality storage options worldwide.
The Chapter 11 submitting is meant to facilitate roughly $145 million in money collateral together with a further $100 million in debtor-in-possession financing. This monetary assist contains $100 million pledged final week by Scania, a Swedish truck producer, which can also be one among Northvolt’s largest prospects.
Tom Johnstone, the interim chairman of the board, emphasised that the corporate stays dedicated to taking part in a pivotal position within the transition to electrical automobiles. He said, “Regardless of near-term challenges, this motion to strengthen our capital construction will permit us to seize the continued market demand for car electrification. We’re happy with the sturdy assist now we have obtained from our current lenders and prospects.”
Presently, Northvolt, which operates in California, reportedly has simply $30 million in money—sufficient to maintain operations for a couple of week—and holds money owed totaling $5.8 billion.
Carlsson, a former Tesla government who co-founded Northvolt in 2016, will stay on the board as a senior advisor. He remarked, “At this time marks a big new part for Northvolt in addition to for me personally.”
In feedback to reporters, Carlsson characterised the financing scenario as “extremely difficult” and highlighted that the corporate must safe round $1.2 billion to return to a steady place.
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