Sweden

Truck maker Scania agreed to buy Northvolt’s heavy industry business, as the battery maker continues to work through a restructuring process, the Wall Street Journal reported. “This acquisition will provide access to a highly skilled and experienced team and a strong portfolio of battery systems built in Gdansk for industrial segments, such as construction and mining, complementing Scania’s current customer offering,” a Scania spokesperson said.

Investment Management Corp. of Ontario has written down its $400 million investment in Northvolt AB, the electric vehicle battery maker that filed for bankruptcy protection last year, Bloomberg News reported. The Canadian pension manager bought Northvolt convertible bonds in 2023, its largest transaction in Europe at the time. IMCO manages about C$77 billion ($53.8 billion) for public-sector groups in the province of Ontario. Northvolt filed for Chapter 11 protection in the US in November after a bid to secure rescue funding fell short, leaving it with little cash and $5.8 billion in debt.

Sweden’s state-owned pension fund AP2 has written down its entire stake in bankrupt battery maker Northvolt AB, according to the fund’s annual report, Bloomberg News reported. AP2, which has been a shareholder of Northvolt since 2021, said the stake was worth 1.5 billion kronor ($137 million) at the beginning of 2024, corresponding to 17% of its investments in sustainable infrastructure. Northvolt filed for chapter 11 protection in the U.S. in November after a bid to secure rescue funding fell short, leaving the company with little cash and $5.8 billion in debt.

Volvo Cars will not pay Northvolt any money for its 50% stake in their Novo Energy battery venture, which it had agreed to acquire, the automaker's quarterly report said on Thursday, Reuters reported. The automaker last week agreed with Northvolt to take over its stake in the venture, which included a planned Gothenburg battery cell factory, without disclosing the amount involved. Northvolt, once considered Europe's best hope for a battery champion, filed for U.S. chapter 11 bankruptcy protection last November. "The purchase consideration rounds to 0 m SEK.

Truckmaker Scania has stepped in to help Northvolt with the day-to-day running of its flagship plant in northern Sweden, a last-ditch effort to boost quality and output at the struggling electric vehicle battery maker as it scrambles to secure funds, Reuters reported. Since November, Scania has sent members of staff to Northvolt’s Ett plant in Skelleftea, 200 kilometres below the Arctic Circle, according to internal Northvolt documents reviewed by Reuters that outline Scania’s support strategy for the green tech player. The plant employs some 2,500 people.

Northvolt AB’s appointed bankruptcy lawyers in the U.S. have sent a letter to creditors in Sweden threatening legal action if they don’t return to the company funds seized by the country’s Enforcement Authority, according to Bloomberg News reported. The steps to recover claims “violate United States federal law and an order from the US Bankruptcy court,” Christopher T. Greco, a lawyer for Kirkland & Ellis LLP, wrote in the letter seen by newspaper Dagens Industri.

Sweden’s central bank lowered its key interest rate on Wednesday, with policymakers signaling they might be finished with their monetary policy easing, the Wall Street Journal reported. The Riksbank cut its key interest rate by a quarter of a percentage point to 2.25%. The bank had previously opened the door to a rate cut during the first half of this year. It said in its statement Wednesday that given the limited risk of inflation becoming too high, coupled with weak economic activity, it decided to make the cut at its first meeting of the year.

Northvolt asked more than 100 shareholders at a meeting this month to provide $1.29 billion over the next two years to help restore the bankrupt Swedish battery maker's business, two sources familiar with the matter told Reuters. Considered Europe's best shot at a home-grown electric vehicle battery champion to compete with Chinese rivals BYD and CATL, Northvolt filed for chapter 11 U.S. bankruptcy in November after talks for fresh funding with investors collapsed amid production and other problems.

Sweden’s central bank lowered its key interest rate on Wednesday, with policymakers signaling they might be finished with their monetary policy easing, the Wall Street Journal reported. The Riksbank cut its key interest rate by a quarter of a percentage point to 2.25%. The bank had previously opened the door to a rate cut during the first half of this year. It said in its statement Wednesday that given the limited risk of inflation becoming too high, coupled with weak economic activity, it decided to make the cut at its first meeting of the year.

Sweden’s Prime Minister Ulf Kristersson said there needs to be a rethink of how governments and private enterprise in Europe work together in the wake of the collapse of battery maker Northvolt AB, Bloomberg News reported.