Northvolt owner: The situation is serious

The battery manufacturer Northvolt's cash reserves need to be replenished. Major lenders are meeting today to discuss a new lifeline, according to the news agency Bloomberg. "The situation for the company is serious", writes Jens Söderblom, press chief at Northvolt owner AMF.

» Updated: October 07 2024

» Published: September 27 2024

Northvolt owner: The situation is serious
Photo: Pontus Lundahl/TT

"Right now, the company is in a very strained financing situation, which we hope they will find a solution to," writes Jens Söderblom in a comment to TT.

"We are a relatively small owner of the company, and it is primarily up to the larger players to take the initiative for a solution forward," he adds.

VW: We have close contacts

The largest owner of Northvolt is the German car manufacturer Volkswagen (VW), which has its own major problems and is also investing heavily in its own battery production in Europe and Canada.

"We have close contacts with Northvolt and support the industrial investment in existing production lines," writes a spokesperson for VW in an email to TT.

"Apart from that, we do not comment on our investments, partners, and suppliers as a matter of principle," he adds regarding potential capital injections or loans to rescue Northvolt from financial collapse.

Among the largest owners are also the investment bank Goldman Sachs, Northvolt's founder and CEO Peter Carlsson, and the investment company Vargas Holding, with investor Harald Mix.

Mix declared in a comment to Sveriges Radio earlier this week that he will continue to support Northvolt with new capital.

AMF has invested 1.9 billion kronor in Northvolt and thus holds 2.8 percent of the shares. The assessment at AMF is that Northvolt batteries are needed and that the company "should have the opportunity to compete in this market," according to Söderblom.

"The discussion about the way forward, we are having primarily with those most closely affected and involved," he adds.

"Major challenges"

Folksamgruppen holds 0.7 percent of the shares.

"We are naturally following Northvolt's situation closely and have ongoing contact with the company. The company is facing major challenges and is presenting its plans for handling them," writes Mats Mehlberg, press officer at Folksamgruppen, in an email to TT.

From Northvolt, it is currently difficult to get information about what is going on.

"We will return with information when the financing round is complete," writes press chief Matti Kataja in a text message to TT.

Battery manufacturer Northvolt, which recently laid off 1,600 employees, has according to reports in, among others, Di.se, asked interested parties to contribute 7.5 billion kronor in new capital.

It has also been reported about a meeting where lenders will discuss a so-called green bond loan of 5 billion dollars (equivalent to 50.5 billion kronor) – a financial lifeline to handle the acute cash crisis – where the Swedish state, according to the news agency Bloomberg, is guaranteeing loans of over 15 billion.

Sources: Di.se, Bloomberg

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

IMF Warns US Tariffs Threaten
1 MIN READ

IMF Warns US Tariffs Threaten Global Economic Growth

Trump Signals Openness to Tariff
1 MIN READ

Trump Signals Openness to Tariff Negotiations for Economic Boost

EU Prepares Trade Countermeasures as
3 MIN READ

EU Prepares Trade Countermeasures as US Tariffs Loom

WTO Warns Trump's Tariffs Could
1 MIN READ

WTO Warns Trump's Tariffs Could Cut Global Trade by 1 Percent

Canada Imposes 25-Percent Tariffs on
1 MIN READ

Canada Imposes 25-Percent Tariffs on US Cars in Trade Dispute

Macron Urges EU Firms to
1 MIN READ

Macron Urges EU Firms to Rethink US Investments Over Tariffs

Volvo's Shift to Electric Cars
2 MIN READ

Volvo's Shift to Electric Cars Faces Scrutiny as Diesel Demand Persists

Stellantis Halts Canada and Mexico
1 MIN READ

Stellantis Halts Canada and Mexico Production Over US Tariffs

Fitch Downgrades China's Credit Rating
1 MIN READ

Fitch Downgrades China's Credit Rating Citing Economic Concerns

Wind Farm Cable Approval Granted
2 MIN READ

Wind Farm Cable Approval Granted but Vattenfall Faces Cost Hurdle

US Stock Market Tumbles as
3 MIN READ

US Stock Market Tumbles as Tariffs Hit Tech Giants

US Tariffs Pose Global Economic
2 MIN READ

US Tariffs Pose Global Economic Challenge, Says Swedish Central Bank Chief

Ikano Bank Faces Police Report
1 MIN READ

Ikano Bank Faces Police Report in Denmark Over Misleading Marketing

EU Trade Chief Sefcovic to
1 MIN READ

EU Trade Chief Sefcovic to Discuss US Tariffs on Friday

Volvo Cars Boosts US Production
3 MIN READ

Volvo Cars Boosts US Production in Response to Trump's Tariffs

US Imposes Tariffs on Remote
1 MIN READ

US Imposes Tariffs on Remote Penguin Islands in Australian Territory

Saab Secures Major Order for
1 MIN READ

Saab Secures Major Order for Combat Vehicle Systems from BAE Systems

Trump Tariffs Threaten to Hike
1 MIN READ

Trump Tariffs Threaten to Hike Coffee Prices in the US

Trump's New Tariffs Spark Global
2 MIN READ

Trump's New Tariffs Spark Global Criticism and Economic Concerns

Kent Concerts Spark Hotel Market
1 MIN READ

Kent Concerts Spark Hotel Market Boost in Stockholm

US Boosts Norwegian Salmon Imports
1 MIN READ

US Boosts Norwegian Salmon Imports Before Tariff Decision

IT Sector Sees Reduced Work
1 MIN READ

IT Sector Sees Reduced Work Hours and Pay Increase in New Agreement

Service Sector Slows as Index
1 MIN READ

Service Sector Slows as Index Drops Below 50 in Sweden

Kristersson Urges Action Over US
2 MIN READ

Kristersson Urges Action Over US Tariffs, Calls for EU-US Trade Talks

Economist Urges Swedish Savers to
2 MIN READ

Economist Urges Swedish Savers to Hold Steady Despite Tariff Impact

Stockholm Stocks Plunge 3.4 Percent
2 MIN READ

Stockholm Stocks Plunge 3.4 Percent After Trump's Tariff News

Stock Market Faces Uncertainty After
2 MIN READ

Stock Market Faces Uncertainty After Trump's Tariff Announcement

Food Prices Stabilize as Supermarkets
3 MIN READ

Food Prices Stabilize as Supermarkets Compete for Shoppers

EU Prepares Countermeasures as US
2 MIN READ

EU Prepares Countermeasures as US Tariffs Threaten Global Economy

Gold Prices Soar to Record
1 MIN READ

Gold Prices Soar to Record Highs Following Trump's Tariff News

Colombia Plans to Acquire Swedish
1 MIN READ

Colombia Plans to Acquire Swedish Gripen Fighter Jets

Tokyo Stocks Drop Sharply Following
1 MIN READ

Tokyo Stocks Drop Sharply Following US Tariff Announcement

Global Leaders Rally Against Trump's
3 MIN READ

Global Leaders Rally Against Trump's Tariffs to Avert Trade War

US Finance Minister Urges Nations:
1 MIN READ

US Finance Minister Urges Nations: Hold Off on Retaliating to Tariffs

Trump's Tariffs Higher Than Expected,
2 MIN READ

Trump's Tariffs Higher Than Expected, Experts Warn of Lingering Uncertainty

Sweden Ready to Tackle Trump's
2 MIN READ

Sweden Ready to Tackle Trump's EU Tariffs, Says PM Kristersson

Trump's Tariffs Spark Global Economic
2 MIN READ

Trump's Tariffs Spark Global Economic Uncertainty, Experts Warn

Trump Announces 20 Percent Tariffs
3 MIN READ

Trump Announces 20 Percent Tariffs on EU Goods

APM Terminals Acquires Key Railway
1 MIN READ

APM Terminals Acquires Key Railway by Panama Canal

Volvo CEO Calls Trump's Tariffs
2 MIN READ

Volvo CEO Calls Trump's Tariffs a Messy Challenge for Swedish Industry