EGN NEWS DESK
“First and foremost, this was essential to capitalize and drive the corporate ahead,” Carlsson mentioned. “Essentially, Northvolt is essential for each our clients and for Europe’s inexperienced transition. The recapitalization permits us to emerge from this course of with an easier capital construction.”
Northvolt’s downward spiral started over the summer season when BMW canceled a contract value €2 billion. The subsequent blows got here quick, with Volvo saying it might take over its three way partnership with Northvolt as quickly because it finds an funding companion.
In September, Northvolt introduced it was shedding 1,600 folks, or 1 / 4 of its workforce in Sweden, and suspending its gigafactory enlargement challenge.
But the largest setback got here from Volkswagen, which is Northvolt’s high investor and holds 21 p.c of the corporate. The German automaker is dealing with a monetary disaster of its personal with slowing gross sales in China and negotiations with union employees over layoffs and potential plant closures.
Despite the Chapter 11 submitting, the corporate’s flagship gigafactory in Skellefteå, Sweden, and Northvolt Labs in Västerås, Sweden, will stay operational. Northvolt Germany and Northvolt North America will even proceed working, with the corporate saying {that a} C$7 billion manufacturing unit being deliberate for Quebec continues to be on observe.
“There are many questions on the velocity of the inexperienced transition and Europe’s function. It’s important to maintain pushing ahead,” Carlsson mentioned. “We’ll remorse it in 20 years if we do not speed up the transition and create a robust European market with robust European champions.”
