5,000 jobs at risk as Swedish battery giant files for bankruptcy

Northvolt says that it has experienced a series of compounding challenges in recent months, which have eroded its financial position, including rising costs, geopolitical instability, supply chain issues, and changing market demand. Adding to this, the company has also struggled internally with getting its business running as promised. Northvolt has throughout its operation in the north of Sweden struggled in its ramp-up of production.

Despite efforts to restructure its finances, including a Chapter 11 process in the US, and securing lender support, the company still could not obtain the necessary funding to continue operating as it is.

A Swedish court-appointed trustee will now manage the process, ncluding the sale of the business and its assets and settlement of outstanding obligations. 

The filings involve Northvolt AB, Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB, and Northvolt Systems AB in Sweden. Northvolt Germany and Northvolt North America are not affected.

"Northvolt recognises the significant impact of this outcome on its employees, suppliers, customers, and other stakeholders. The company is working closely with relevant authorities, trade unions, and partners to ensure that employees receive the support and information they need during this transition," the company writes in a press release.

As the bankruptcy process unfolds, the court-appointed trustee will determine the future of Northvolt’s businesses and their assets, including technology and production facilities.

Around 5,000 people currently work at Northvolt, most of them at the company's operations in Skellefteå. The company also has employees in Västerås and Stockholm, according to Swedish broadcaster SVT.