December 23, 2024 – European lithium-ion battery giant Northvolt announced on Friday local time that it is optimistic about securing additional bankruptcy financing by the end of January next year. The company has been in contact with over 100 lenders and investors.
Northvolt, which declared bankruptcy on November 21st, received a $100 million loan from Scania, a Swedish truck manufacturer that is both a shareholder and its largest customer. However, this loan alone is insufficient to support Northvolt through the entire bankruptcy reorganization process, prompting the company to seek further financing options from strategic investors and financial institutions.
During a court hearing in Houston, Northvolt’s lawyer, Jack Luze, disclosed that the company has reached out to more than 100 potential lenders and investors in an effort to raise new funds for a smooth bankruptcy reorganization.
According to Luze, the company intends to submit a long-term financing proposal to the U.S. bankruptcy judge at the court hearing scheduled for January 28th next year.
The judge approved Northvolt’s previous bankruptcy loan on Friday, which had previously allowed the company to access the first $51 million from the loan.
A Northvolt spokesperson expressed satisfaction with the hearing’s outcome, stating, “We are pleased with the result of this hearing and have obtained approval to begin accessing new funds. This is a significant step forward in our reorganization process.”
Northvolt, which has raised over $10 billion, aimed to challenge well-funded and experienced Chinese battery manufacturers by mass-producing electric vehicle batteries. The company employs approximately 6,600 people across seven countries globally and has stated its intention to maintain normal business operations during the bankruptcy reorganization process.
