Northvolt Subsidiary Bankruptcy: Impact on Sweden's Battery Ambitions

Northvolt's subsidiary, Northvolt Ett Expansion AB, declared bankruptcy due to a cancelled project that jeopardized the company's finances. Estimated debts range from 2 to 3 billion Swedish crowns. Despite financial setbacks and external competition, Northvolt persists, seeking further stakeholder cooperation to stabilize its operations.

Northvolt's subsidiary, Northvolt Ett Expansion AB, has filed for bankruptcy after its planned project was cancelled according to recent court documents. The company, part of the financially challenged battery group, is consolidating its operations.

The subsidiary reportedly owes between 2 billion and 3 billion Swedish crowns, as detailed by a court-appointed trustee to Dagens Industri. Northvolt's board halted the project that would have increased capacity at their gigafactory in northern Sweden.

Although Northvolt Ett Expansion AB is in default, the bankruptcy filing, confirmed on Tuesday, has no repercussions on the Northvolt Group's other businesses, according to a company spokesperson. Efforts to sustain dialogue with stakeholders are ongoing amid industry competition and internal restructuring.

(With inputs from agencies.)