Northvolt’s shareholders have formally endorsed the battery maker’s plan to continue business after an extraordinary general meeting prevented potential liquidation. The company filed for Chapter 11 bankruptcy protection in the United States in late November, citing debts of approximately USD 5.8 billion.
The approval represents an important step in Northvolt’s restructuring. According to the firm, the vote demonstrates “the support of our shareholders” as Northvolt consolidates its business, ramps production, and implements significant changes.
Swedish truck manufacturer Scania, owned by Volkswagen and one of Northvolt’s top customers, has committed USD 100 million in new financing. The company also expects to tap into an additional USD 145 million in cash collateral from its bankruptcy filing.
Despite job cuts affecting around a quarter of its workforce (1,600 positions), Northvolt emphasizes that its primary objective is to maintain battery cell production. Other activities, such as cathode manufacturing and recycling, are on hold to prioritize the core business.
Northvolt’s major stakeholders include German automaker Volkswagen—also under financial pressure—and investment bank Goldman Sachs. Founded in 2016, Northvolt initially symbolized Europe’s ambitions to close the battery production gap with Asia and the United States. However, production delays have led to setbacks, including the loss of a significant order from BMW in May.
With the shareholder vote now cleared, Northvolt plans to continue focusing on strengthening its core production capabilities while navigating the ongoing bankruptcy restructuring process.
Source: The Local
