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.

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Northvolt owner: The situation is serious
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"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

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

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