Northvolt explains bankruptcy: glimmer of hope for the future?

Northvolt explains bankruptcy: glimmer of hope for the future?

Stockholm, Schweden - The Swedish battery manufacturer Northvolt has filed for bankruptcy. This was announced on Wednesday when the company in Stockholm submitted a corresponding application. Despite intensive negotiations and trying to secure the financial and operational future, Northvolt was forced to take this step. In the communication, the company admitted that the bankruptcy was "the only viable solution", since one could not create the prerequisites for survival in the current form, such as Merkur noted.

In addition, those responsible plan to pursue all realistic options during the insolvency proceedings to ensure the financing of the operational business. In November, Northvolt had already initiated a renovation process in the USA in accordance with Chapter 11 of US bankruptcy law, which further complicated the company's global strategy. Northvolt was considered a hope for the European lithium-ion battery production and wanted to stand up to the Asian manufacturers. The challenges that the company must now deal with not only worry about the employees, but also raise questions about the future of electromobility in Europe.