Ontario Pension Fund Writes Down $400M Investment in Bankrupt Northvolt
Investment Management Corp. of Ontario (IMCO) has significantly devalued its $400 million investment in Northvolt AB, an electric vehicle battery manufacturer that filed for bankruptcy protection last year, according to sources familiar with the matter. IMCO is Canada's largest pension manager and made its investment in Northvolt convertible bonds in 2023.
This write-down follows Northvolt's Chapter 11 bankruptcy filing in November after failing to secure rescue funding. The company has since struggled to find new capital.
Other Canadian pension plans have also invested heavily in Northvolt. Ontario Municipal Employees Retirement System, Canada Pension Plan Investment Board, and Caisse de Depot et Placement du Quebec have all allocated funds to the company.
Globally, investors are now marking down their exposure to Northvolt. Sweden's state-owned pension investors have written off their entire investment, while Danish pension fund ATP has taken a significant hit on its 5% stake. BlackRock recently announced a devaluation of one of its flagship renewable funds due in part to Northvolt's collapse.