What's going on? The Swedish company that specializes in lithium-ion battery technology for electric vehicles has declared bankruptcy. The court application in this case was submitted to Stockholm. The management board said that “after comprehensive activities aimed at examining all available ways of securing the profitable financial and operational future of the company” he had to submit and declare bankruptcy. “It was the only solution” – Doned.
Great fall: – This is one of the largest bankruptcies in the history of Swedish industry – says Wallin Andreasen, a professor of Norwegian Economic School on Swedish television. Also admits that the mere application of the application for Bankruptcy is not a big surprise. The company's problems were known. The production of batteries in Nordic countries was suspended at the beginning of the year. In 2024, the Swedish company announced that it would end activities related to the development and production of energy storage in Poland and Sweden. For the plant at ul. Andruszkiewicz in Gdañsk This meant a closure. Despite this, there were to be about 5,000 employees in the company.
Bad time? “Like many companies in the battery sector, Northvolt has experienced a number of complex challenges in recent months that have strained his financial position, including rising capital costs, geopolitical instability, later disturbances of the supply chain and change of market demand” – explains the company in the message. “In addition, the company stood in the face of significant internal challenges in increasing production, both in a way predictable for involvement in a highly complex industry, as well as in others, which could not be predicted “ – he adds. Lars Lysdahl from Rystad Energy in an interview with Swedish television admits that the company was actually “unlucky”.
What next? – This is an extremely difficult day for everyone in Northvolt. We decided to build something groundbreaking: make a real change in the battery industry, electric vehicles and a wider European industry and accelerate the transition to a green and balanced future – regretted Tom Johnstone, temporary chairman of the Northvolt Directors Council. – We hope that the foundations we have built: technology, specialist knowledge and commitment to sustainable development – They will continue to drive changes in the industry – he added. Northvolt was to be Europe's hope to reduce dependence on China in the field of battery to cars. The future of the company's assets in this technology and production plants depends on the trustee.
Sources: nrk.no, finance.yeah, northvolt.com