Northvolt, the Swedish electric vehicle battery manufacturer, has obtained a short-term funding arrangement, according to a report by business daily DI, citing unidentified sources. This temporary influx of capital, expected to suffice for only a few weeks, will enable the company to meet its immediate obligations, including wage payments.
Ongoing discussions for a more comprehensive financing package are reportedly progressing, with speculation suggesting a potential deal exceeding $300 million could be announced before the end of October. Such an agreement would provide Northvolt with sufficient funds to operate until next year, as indicated by a person with direct knowledge of the company’s plans.
Northvolt has been navigating significant challenges in recent months, including production hurdles, sluggish market demand, and intense competition from Chinese rivals. These obstacles have prompted the company to explore drastic measures, such as downsizing and job cuts, in an effort to remain afloat.
Despite the looming financing deal, the speculated $300 million falls short of the company’s initially reported target of 15 billion crowns ($1.4 billion) and the subsequently scaled-back ambition of 7.5 billion crowns. Northvolt has yet to provide an official comment on the matter, having previously acknowledged ongoing talks with investors and lenders to secure vital funding.
Source: Reuters
