Northvolt Seeks $1.29 Billion Funding to Revitalize Operations
Northvolt, Europe's leading electric vehicle (EV) battery manufacturer, has reportedly requested $1.29 billion in funding from its shareholders. The request aims to support the company's restructuring efforts following its Chapter 11 bankruptcy filing in November.
According to sources familiar with the matter, Northvolt presented its funding request at a meeting with over 100 shareholders. The funds are intended to bridge the company's cash flow gap until 2027, as it seeks to secure long-term investment.
Northvolt's shareholders include Goldman Sachs, BMW, Volkswagen, and Scania. The company has confirmed ongoing discussions with potential investors, both strategic and financial.
Northvolt's current financial situation allows it to sustain operations until mid-February, according to the sources. The company secured $245 million in financing upon filing for bankruptcy, including a $100 million loan from Scania.
Industry experts believe that potential investors for Northvolt could include Chinese, South Korean, or Japanese battery manufacturers with expertise in EV battery production. Northvolt's lawyers have expressed optimism in presenting a long-term financing plan to the bankruptcy court in the near future.
The funding, if secured, may come from a combination of existing and new stakeholders, including both financial and strategic investors. Northvolt aims to restore its financial stability and resume its operations as a leading player in the EV battery industry.