Northvolt's Last Stand: Battling Bankruptcy with Billion-Dollar Bid

Northvolt, a Swedish battery maker, seeks $1.29 billion from shareholders to revive operations after filing for Chapter 11 bankruptcy. Facing cash exhaustion by February, the company is in talks with investors, while a rescue may depend on Asian battery giants. Shareholders' commitment remains uncertain.

Northvolt, the Swedish battery maker, has requested a substantial $1.29 billion from its shareholders in an effort to revive its business following a Chapter 11 bankruptcy filing. The company, seen as Europe's strongest contender in the electric vehicle battery sector to rival Chinese competitors, hopes to extend its operations until 2027.

After talks for fresh funding failed, Northvolt has been pursuing strategic and financial investors. While its efforts are reportedly gaining traction, the response from shareholders is still unknown. Notably, major stakeholders include Goldman Sachs, BMW, Volkswagen, and Scania, but the outcome of the recent shareholders meeting remains confidential.

With cash expected to last only until mid-February, a mix of financial aid from existing and new partners is crucial for Northvolt's survival. The potential for collaboration with Asian battery manufacturers is being considered as a rescue strategy. The firm is poised to unveil a long-term financing plan soon, though immediate results are yet to be seen.

(With inputs from agencies.)