Sweden

Northvolt, the Swedish electric vehicle battery startup, has filed for bankruptcy in Sweden, marking the end of a company once seen as Europe’s best hope of challenging the dominant Asian battery industry, The Guardian reported. The company said in a statement that it had been unable to “secure the necessary financial conditions to continue in its current form” in Sweden. After the bankruptcy filing, a court-appointed trustee will oversee the sale of Northvolt’s business and assets while settling its outstanding debts.

Truckmaker Scania is willing to go ahead with purchasing the only profitable business of bankrupt battery maker Northvolt for $6 million, it said on Wednesday, Reuters reported. Northvolt filed for bankruptcy on Wednesday, bringing to an end Europe's best hope of developing a rival to major Asian electric vehicle battery players. Any potential asset sales are also suspended for now. The Swedish battery maker had for months attempted to sell some of its non-core businesses to try to rescue the main operations that produce battery cells for electric vehicles.

Northvolt, the Swedish maker of battery cells for electric vehicles, may be close to filing for bankruptcy in Sweden, Swedish newspaper Dagens Nyheter (DN) reported on Tuesday, Reuters reported. Northvolt sought U.S. chapter 11 bankruptcy protection in November last year as its cash pile dwindled, trying to secure funds that would allow it to fix persistent problems in scaling up output at its flagship plant in northern Sweden.

Swedish truckmaker Scania, a shareholder and customer of struggling battery maker Northvolt, told Reuters on Monday it had secured an additional supplier of battery cells, Reuters reported. Scania in January stepped in to help Northvolt with the day-to-day running of its flagship plant in northern Sweden in an effort to boost quality and output at the electric vehicle battery maker.

The Ontario Municipal Employees Retirement System booked a loss on its $325 million investment in Northvolt AB, the Swedish electric vehicle battery maker that filed for bankruptcy protection last year, Bloomberg News reported. “At the time we made the investments, Northvolt represented an attractive growth opportunity supported by several other of the world’s most respected investors,” a spokesperson for the pension manager said by email.

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.