Northvolt subsidiary managing its Swedish expansion files for bankruptcy

The decision follows the company's earlier suspension of the Northvolt Ett Expansion project, a key part of Northvolt’s plans to increase production capacity at its flagship plant in Skellefteå, Sweden.

Northvolt Ett Expansion AB, the entity responsible for managing the expansion project, filed for bankruptcy at the District Court of Stockholm on October 8, 2024. According to a press release, the subsidiary has no direct employees and was primarily overseeing construction efforts at the plant. Northvolt states that the application was filed due to the financial situation of Ett Expansion AB. 

The suspension of the expansion, first announced on September 23, came as Northvolt Group refocused its operations in Sweden – which also resulted in the redundancy of roughly 1,600 Northvolt workers spread across Skellefteå (1,000), Västerås (400), and Stockholm (200). All work on the project has been halted since then, and future dealings with the subsidiary will now be managed by a bankruptcy trustee.

Despite the bankruptcy, Northvolt emphasised that this development only affects Northvolt Ett Expansion AB. The broader Northvolt Group, which comprises more than 20 different entities, remains operational. 

"Looking forward, the Northvolt Group is concentrating its resources towards accelerating production in large-scale cell manufacturing within the fully-built, first phase of Northvolt Ett and delivering on commitments to its automotive customers," the company writes in the press release.