Northvolt Expansion Hits Roadblock: Subsidiary Declares Bankruptcy

Northvolt's subsidiary, Northvolt Ett Expansion AB, has filed for bankruptcy after the cancellation of its gigafactory expansion project in Sweden. The unit had debts between 2 billion and 3 billion Swedish crowns. Northvolt Group continues to consolidate despite fears over Europe's leading EV battery producer's future.

A subsidiary of Swedish battery manufacturer Northvolt filed for bankruptcy on Tuesday, as revealed by court documents, following the cancellation of a major project. Despite this setback, the Northvolt Group remains committed to restructuring its operations for greater sustainability.

The Northvolt Ett Expansion AB unit faced financial distress with debts ranging from 2 to 3 billion Swedish crowns. The unit was tasked with significantly increasing the capacity of the group's gigafactory in northern Sweden but had its project halted by the company's board last month.

In response to these developments, a spokesperson for Northvolt emphasized that halting the expansion was essential to protecting the group's financial stability. Meanwhile, other entities within the Northvolt Group faced overdue bills but are engaging with stakeholders to ensure ongoing cooperation in operations.

(With inputs from agencies.)