The Board of Directors of Morrow Batteries ASA announced that it has resolved to file for bankruptcy proceedings for the parent company and its subsidiaries, Morrow Technologies AS and Morrow Industrialization Center AS. The decision follows the inability to secure a short extension to complete discussions with potential industrial investors and arrange required financing before available liquidity was exhausted. Although several investor negotiations were in advanced stages, none could be finalized under the group’s financial constraints.
Since its founding in 2020, Morrow has pursued industrial-scale production of sustainable lithium-ion battery cells in Norway. The company recently signed a long-term master supply agreement with a Finnish battery system provider and secured its first defense-industry contract for cell deliveries to a German customer. However, rising capital costs, delays in ramping up production, weakening investment appetite and global market oversupply have intensified price pressure and challenged Morrow’s ability to raise new funds.
Board and management teams engaged in intensive dialogues with existing shareholders, potential new investors and public authorities, exploring equity injections, debt financing and alternative structures. Despite these efforts, no viable solution could be put in place within the timeframe dictated by the company’s cash position.
The board emphasized that Morrow’s technology and assets retain significant long-term value, noting the growing demand for battery solutions across diverse applications. It expressed confidence that, under appropriate ownership, the business could be restructured into a competitive contributor to Europe’s battery sector.
To date, Morrow has been financed through approximately NOK 3.3 billion in equity from shareholders including energy and industrial investors, over NOK 500 million in loan guarantees, NOK 550 million in loans from Innovation Norway (with nearly NOK 300 million drawn), and NOK 202 million in public grants. Research projects received funding from the Research Council of Norway, and a specialized factory building was funded by an investment of NOK 542 million from a state-owned real estate partner.
The Agder District Court is expected to appoint a bankruptcy administrator, who will assume control of assets and operations. Morrow’s management will support the administrator to preserve value and explore options for continuing parts of the business. Employees will be protected under Norway’s statutory wages guarantee scheme.
Source: MyNewsdesk
