Northvolt, once touted as Europe's strongest competitor to Chinese battery manufacturers, has filed for Chapter 11 bankruptcy in the U.S. to restructure its debt and operations.
The company reported a staggering $1.2 billion loss in 2023, significantly worsening from the previous year's loss of $285 million, highlighting severe financial struggles.
Despite these challenges, interim chairman Tom Johnstone emphasized that the restructuring aims to strengthen capital structure and meet ongoing demand for vehicle electrification.
Amid bankruptcy, Northvolt plans to keep Swedish factories operations ongoing, ensuring deliveries, vendor payments and employee salaries while separately financed plants in Germany and Canada continue unaffected.
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