SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Northvolt sells factory in California

The battery manufacturer Northvolt is selling a factory facility in San Leandro, California, to the American battery company Lyten. No price tag has been disclosed by Northvolt, whose hunt for new billions to address short- and long-term challenges continues.

» Published: November 13 2024

Northvolt sells factory in California
Photo: Magnus Hjalmarson Neideman/SVD/TT

Northvolt took over the current factory in 2021, in connection with the acquisition of American Cuberg.

The deal with Lyten follows Northvolt's closure of a research and development center in San Leandro last autumn and laid off 200 employees, whose operations were moved to Västerås.

Buyer wants to invest 550 million

Lyten is now buying the factory facility and taking over the lease agreement for the property from Northvolt. The plan is to invest around 50 million dollars (equivalent to 550 million kronor) in the facility over the next few years, according to Bloomberg.

Northvolt – in financial crisis since earlier this year – is still seeking multi-billion amounts for both short- and long-term financing. Negotiations are ongoing with owners, lenders, and customers, and the focus has been on saving the core business in Skellefteå, where the company has now concentrated most of its resources to get the production capacity up at the battery factory Northvolt One.

They're moving forward. We're seeing progress, but such processes tend to take a bit longer than expected, says Northvolt's press chief Erik Zsiga about the financing talks.

According to Zsiga, the factory sale to Lyten in California is good news.

Northvolt welcomes this positive deal and is grateful for the cooperation with Lyten to get there, he says.

Negotiating with Volvo Cars

This autumn, the crisis-stricken battery manufacturer has discontinued several major development projects, made large personnel reductions, and put the subsidiary Northvolt Expansion – which was building a new battery factory – into bankruptcy with several billion in debts.

Northvolt is also negotiating with car manufacturer Volvo Cars about the future of the factory construction Novo Energy in Gothenburg, since co-owner Volvo Cars accused co-owner Northvolt of breach of contract.

Earlier in the week, Sven Fuhrmann, the largest Northvolt owner Volkswagen's representative on Northvolt's board, resigned from his assignment. This is because Volkswagen, with its own major financial problems, has so far not wanted to discuss capital injections to save Northvolt.

Tags

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

More news

Historic Strong Quarter for Skistar

Historic Strong Quarter for Skistar

Forecast: Cheap Electricity Due to High Water Levels

Forecast: Cheap Electricity Due to High Water Levels

Swedish trade unique - "can be price-increasing"

Swedish trade unique - "can be price-increasing"

Mostly Upwards on Asian Stock Exchanges

Mostly Upwards on Asian Stock Exchanges

Japan leaves the interest rate unchanged

Japan leaves the interest rate unchanged

SBAB: The Central Bank lowers the interest rate after the summer

SBAB: The Central Bank lowers the interest rate after the summer

Nvidia rolls into GM's vehicles

Nvidia rolls into GM's vehicles

Now Northvolt's layoffs begin: "Tough days"

Now Northvolt's layoffs begin: "Tough days"

Wall Street fell again – Tesla continues to plummet

Wall Street fell again – Tesla continues to plummet

New confidence for the oil fund's CEO

New confidence for the oil fund's CEO

Heavy decision on Northvolt this week

Heavy decision on Northvolt this week

Wage Negotiations in Final Stage – New Bids on the Way

Wage Negotiations in Final Stage – New Bids on the Way

Mortgage lenders raise interest rates

Mortgage lenders raise interest rates

The Hackers Struck When the Tax Return Opened

The Hackers Struck When the Tax Return Opened

New York dragged Stockholm Stock Exchange down

New York dragged Stockholm Stock Exchange down

Tesla competitor promises record-fast charging

Tesla competitor promises record-fast charging

Get your tax refund before Easter

Get your tax refund before Easter

Still Happy Faces on Asian Stock Exchanges

Still Happy Faces on Asian Stock Exchanges

Alphabet buys company for 333 billion kronor

Alphabet buys company for 333 billion kronor

This is how it went for the "party Swedes"

This is how it went for the "party Swedes"

The US stock market rose for the second day in a row

The US stock market rose for the second day in a row

Swedish drug candidate classified in the USA

Swedish drug candidate classified in the USA

Oil price rises after Trump's threats against Iran

Oil price rises after Trump's threats against Iran

Up to 7,500 jobs away from Audi

Up to 7,500 jobs away from Audi

USA's retail trade below expectations

USA's retail trade below expectations

Klarna's giant deal in the USA - "game changer"

Klarna's giant deal in the USA - "game changer"

Major Bank Raises Mortgage Interest Rates

Major Bank Raises Mortgage Interest Rates

Busch hopes for battery support from the EU

Busch hopes for battery support from the EU

OECD: Trump's Trade War Slows Down the Global Economy

OECD: Trump's Trade War Slows Down the Global Economy

Clothing Chain Applies for Bankruptcy Protection

Clothing Chain Applies for Bankruptcy Protection

Astra Zeneca makes multi-billion purchase

Astra Zeneca makes multi-billion purchase

The Stockholm Stock Exchange closed up

The Stockholm Stock Exchange closed up

These educations give you a job

These educations give you a job

Cheerful start on Asia's stock exchanges

Cheerful start on Asia's stock exchanges

Egg smuggling to the USA increases sharply

Egg smuggling to the USA increases sharply

Vance believes Tiktok will meet the deadline

Vance believes Tiktok will meet the deadline

This is how China will get the economy going

This is how China will get the economy going

China's Green Energy Boom - Like 320 Nuclear Reactors

China's Green Energy Boom - Like 320 Nuclear Reactors

They worked 28 days too much per year.

They worked 28 days too much per year.

New Chinese AI - "Better and Cheaper"

New Chinese AI - "Better and Cheaper"