Northvolt's Financial Battle: Racing Against Time for Funding Stability

Northvolt, a Swedish maker of batteries for electric vehicles, is urgently seeking about €200 million in short-term funding to stabilize its finances. Despite significant progress, the company faces challenges due to production issues and competition. Talks with investors, potential pre-orders, and loans are ongoing to secure funds.

Northvolt, facing financial difficulties, is in active discussions with investors and lenders for approximately €200 million in short-term funding, according to sources. This effort is crucial for the Swedish electric vehicle battery manufacturer to stabilize its finances amid ongoing struggles with production and competition.

Despite substantial progress in recent weeks, the company has been forced to consider cutting jobs and slimming down operations. A €150 million verbal funding agreement is on the table yet waiting for finalization, a figure significantly lower than previous fundraising targets reported in recent months.

The discussions are spearheaded by Scania, a Northvolt shareholder, while BMW has stepped back from its procurement plans. In the meantime, Northvolt confirmed its commitment to building a factory in Germany with EU state aid, even as it undergoes strategic financial restructuring.

(With inputs from agencies.)