Northvolt AB has officially filed for bankruptcy in Stockholm, Sweden, after encountering significant financial and operational challenges. The company announced the decision on March 12, 2025, following extensive efforts by its Board of Directors to secure a sustainable future through various financial restructuring options.
Northvolt, a prominent player in the battery sector, has faced a series of obstacles that have impacted its financial stability. These challenges include escalating capital costs, geopolitical tensions, supply chain disruptions, and shifting market demands. Additionally, the company struggled with both anticipated and unforeseen internal issues related to scaling up production in the complex battery industry.
Despite attempts to negotiate a financial restructuring, including exploring a Chapter 11 process in the United States and receiving liquidity support from lenders and key partners, Northvolt was unable to obtain the necessary financial conditions to continue operations in its current form. Consequently, the Board concluded that filing for bankruptcy was the only viable option. The company is now seeking alternative financing solutions to maintain operations during the bankruptcy proceedings in Sweden.
The bankruptcy filing affects several Northvolt entities, including Northvolt AB, Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB, and Northvolt Systems AB. However, Northvolt Germany and Northvolt North America will not be part of the bankruptcy filings in their respective jurisdictions. Decisions regarding these subsidiaries will be made by the court-appointed trustee in consultation with the group’s lenders.
Mikael Kubu has been appointed as the trustee, who will oversee the sale of Northvolt’s business and assets, as well as the settlement of outstanding obligations. The process will adhere to Swedish insolvency laws, ensuring an orderly transition for employees, partners, and creditors. Northvolt is collaborating with relevant authorities, trade unions, and partners to support employees during this transition.
Tom Johnstone, the Interim Chairman of Northvolt’s Board of Directors, expressed regret over the outcome, highlighting the company’s efforts to drive innovation in the battery and electric vehicle industries. He noted recent improvements in production at Northvolt’s facility in Skellefteå, including a doubling of cell output and a 50% increase in production yield since September.
Johnstone remains hopeful that ongoing discussions with potential investors during the Chapter 11 process will lead to the necessary financing to continue operations under the Swedish bankruptcy framework. He emphasized Northvolt’s commitment to sustainability and the foundational work the company has achieved in technology and expertise.
As the bankruptcy proceedings continue, further updates will be provided by the trustee. Stakeholders are encouraged to contact the trustee’s office for more information.
Source: Northvolt
