Northvolt Navigates Bankruptcy: The Quest for Crucial Funding

Northvolt, a Swedish battery maker, seeks $1.29 billion from shareholders after filing for Chapter 11 bankruptcy. Facing production issues and failed funding talks, the company plans to secure investment to last until 2027. Potential donors include existing stakeholders like Goldman Sachs and BMW.

Northvolt, the Swedish battery manufacturer, is seeking $1.29 billion from its shareholders in a bid to revive its operations. This request follows the company's recent bankruptcy filing, which occurred after unsuccessful talks with investors due to significant production challenges, sources told Reuters.

The former CEO and co-founder, Peter Carlsson, had previously indicated the need for between $1 billion and $1.2 billion, though he didn't provide a timeline. With its cash reserves potentially depleted by February, Northvolt must secure the necessary investment to continue its operations beyond 2027.

A spokesperson for Northvolt confirmed ongoing discussions with various strategic and financial partners but declined to comment further on potential outcomes. While the response from shareholders, including major players like Goldman Sachs and BMW, remains uncertain, Northvolt retains hope for a financial lifeline from Asian battery makers.

(With inputs from agencies.)