Northvolt source: 150 million euros secured

Crisis-ridden Northvolt is holding talks with lenders and investors to raise 200 million euros, approximately 2.3 billion Swedish kronor, according to several media outlets citing the news agency Reuters.

» Published: October 11 2024

Northvolt source: 150 million euros secured
Photo: Pontus Lundahl/TT

Share this article

According to the news agency Bloomberg, approximately 150 million euros have been secured so far through verbal agreements, according to a source.

On Monday, the battery company must pay a tax debt of 287 million kronor. If they do not do so, they risk bankruptcy, reconstruction – or personal payment liability for the board.

Yesterday, information emerged that a solution may be on the way, and according to information to Dagens industri, there is a proposal that includes both shareholders, lenders, and customers.

"Clearly, I believe we will solve this," wrote Northvolt's CEO Peter Carlsson in a comment to SVT on Thursday.

"Serious situation"

Ebba Busch (KD) stands firm on her previous statements that the state will not step in to support the company. At the same time, she says she is in direct contact with the German government to emphasize the importance of European battery production.

We are in a very serious geopolitical situation where we risk getting a situation where we prioritize defense and security issues, but do not see that much of our civilian infrastructure falls into foreign hands, she says to journalists on Friday.

Despite the looming risk of bankruptcy, Busch is cautiously optimistic.

Hope lives, she says.

Laid-off personnel

Northvolt is in a liquidity crisis, and as recently as Tuesday, the subsidiary Northvolt Ett Expansion went bankrupt with debts of several billion. The subsidiary is responsible for building a new battery factory in Skellefteå, adjacent to the existing Northvolt Ett factory.

In parallel, negotiations are also underway with the union. In September, Northvolt notified 1,600 employees of termination, of which 1,000 are in Skellefteå.

Northvolt's largest owner, Volkswagen, writes in a comment to TT that they are in close contact with the company:

"We support the industrial ramp-up of the existing production lines."

Awaiting a concrete proposal

According to information to Dagens industri, a solution will involve both shareholders, lenders, and customers – primarily Scania. In a comment, Scania writes that they are also in close contact with Northvolt.

AMF, which owns a few percent of the company's shares, states that they will evaluate potential proposals:

"If these talks result in a concrete proposal, we will evaluate it based on what we believe is best for our savers in the long term," writes the pension company's press chief Jens Söderblom.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Nvidia Stock Drops 2.7% Amid New York Market Decline
1 MIN READ

Nvidia Stock Drops 2.7% Amid New York Market Decline

Trump Criticizes EU's $33.9 Billion Fine on Google, Threatens Trade Probe
2 MIN READ

Trump Criticizes EU's $33.9 Billion Fine on Google, Threatens Trade Probe

US Job Market Slows with Only 22,000 New Jobs in August
2 MIN READ

US Job Market Slows with Only 22,000 New Jobs in August

Tesla Board Proposes New Bonus Plan for Elon Musk
1 MIN READ

Tesla Board Proposes New Bonus Plan for Elon Musk

13 Suspected of Insider Trading After Dawn Raid
1 MIN READ

13 Suspected of Insider Trading After Dawn Raid

18 Charged in Major Insider Trading Case in Sweden and Norway
1 MIN READ

18 Charged in Major Insider Trading Case in Sweden and Norway

Skandiabanken Offers Lowest Mortgage Rates in August
1 MIN READ

Skandiabanken Offers Lowest Mortgage Rates in August

Stockholm Stock Market Rises for Third Consecutive Day
1 MIN READ

Stockholm Stock Market Rises for Third Consecutive Day

Danish Energy Giant Ørsted Lowers Profit Expectations for This Year
1 MIN READ

Danish Energy Giant Ørsted Lowers Profit Expectations for This Year

Foreign Ownership Boosts Swedish Economy with Productivity Growth
1 MIN READ

Foreign Ownership Boosts Swedish Economy with Productivity Growth

Calm Housing Market Spurs Speculator Interest
2 MIN READ

Calm Housing Market Spurs Speculator Interest

Asian Stock Markets Rise Amid US-Japan Tariff Agreement
1 MIN READ

Asian Stock Markets Rise Amid US-Japan Tariff Agreement

USA and Japan Reach New Trade Agreement on 15% Tariffs
1 MIN READ

USA and Japan Reach New Trade Agreement on 15% Tariffs

Activity Toys Pose Serious Injury Risks for Children in EU Survey
1 MIN READ

Activity Toys Pose Serious Injury Risks for Children in EU Survey

Hexagon Sells Software Business for 30 Billion Kronor
1 MIN READ

Hexagon Sells Software Business for 30 Billion Kronor

US Stock Market Sees Broad Gains Amid Labor Market Weakness
1 MIN READ

US Stock Market Sees Broad Gains Amid Labor Market Weakness

Ørsted Sues Trump Administration Over Halted US Wind Project
1 MIN READ

Ørsted Sues Trump Administration Over Halted US Wind Project

US Private Sector Adds 54,000 Jobs in August, Below Expectations
1 MIN READ

US Private Sector Adds 54,000 Jobs in August, Below Expectations

Goldman Sachs: Fed Uncertainty Could Propel Gold Prices
1 MIN READ

Goldman Sachs: Fed Uncertainty Could Propel Gold Prices

Food Chains in Sweden Promise Price Cuts with VAT Reduction
3 MIN READ

Food Chains in Sweden Promise Price Cuts with VAT Reduction