Northvolt has requested over $1.29 billion from more than 100 shareholders in a recent meeting to revive the bankrupt Swedish battery maker's business over the next two years, as reported by two sources familiar with the situation to Reuters.
Considered Europe's potential electric vehicle battery leader to rival Chinese companies like BYD and CATL, Northvolt filed for Chapter 11 bankruptcy in the U.S. in November due to funding setbacks and operational issues.
Former CEO and co-founder Peter Carlsson mentioned the need for $1-1.2 billion in the long term without specifying a timeframe. The current funding request aims to sustain operations until 2027 as Northvolt seeks urgent investment before its cash reserves are depleted by February.
Responding to Reuters, Northvolt acknowledged receiving interest from various parties for financing but refrained from further comment on ongoing talks with potential strategic and financial investors.
Shareholders' reactions to the funding plea, along with their willingness to contribute financially, remain undisclosed due to confidentiality concerns. Major stakeholders in Northvolt include Goldman Sachs, BMW, Volkswagen, and Scania, though it is unclear which investors participated in the meeting.
Sources reveal that Northvolt assured shareholders of adequate funds until at least mid-February, aligning largely with information provided in the company's bankruptcy court filing, with a deadline potentially extending until the end of February.
Northvolt secured $245 million in financial backing during the bankruptcy period, including a substantial loan from Scania, its primary shareholder and customer. Potential rescuers for the company are speculated to be established Asian battery manufacturers given their expertise in EV battery production.
Northvolt's legal team aims to propose a prolonged financing plan at an upcoming court hearing to the bankruptcy judge, but confirmation on the timeline or outcomes from the company is pending. Future funding endeavors are anticipated to involve a mix of existing stakeholders, new investors, and financial institutions.