Swedish battery manufacturer Northvolt has decided to continue operations despite its financial difficulties. This is the result of a vote by shareholders, including Volkswagen and Goldman Sachs, in Stockholm. The company has been struggling for months with production problems, dwindling financial resources, and strong competition from China. Since late 2024, Northvolt has been in reorganization proceedings under Chapter 11 of the US Bankruptcy Code.

The shareholder approval will allow the company to proceed with its restructuring while attracting new investors. The company said it is in discussions with potential investors to complete a financing round of up to 1.2 billion US dollars. The goal of the financing round will be the repayment of debt and the stabilization of the companyʼs operations.

Since its founding in 2016, Northvolt has raised more than ten billion dollars in equity, debt, and public funding. However, the companyʼs debt stands at 5.8 billion dollars, while its cash and cash equivalents recently totaled just 30 million dollars.

Source:https://www.reuters.com/business/northvolt-remain-operation-while-seeking-financial-rescue-2025-01-08/