"Clearly this is not an outcome we had hoped for," Tom Johnstone, Interim Chairman of Northvolt’s Board of Directors, told a press conference on Wednesday morning.
Johnstone said that there would now be a "focus on securing an orderly transition for all stakeholders."
It's not yet clear how the bankruptcy filing will affect staff at Northvolt, many of whom are foreign employees who are in Sweden on work permits
The company said it "recognises the significant impact of this outcome" on employees and suppliers, among others and was taking steps to support staff.
"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," a press statement read.
"Let's focus on working with the trustee to secure continued production, to secure jobs, we hope, for a number of people there, let's focus on that, if we can, right now, and let's take the time to look at lessons a little bit later," Johnstone told the press conference.
When asked about securing jobs for current employees, Johnstone said he was "hopeful that operations would continue to a certain degree".
"Exactly how that will be I cannot commit to at this point in time, that is the administrator's responsibility, but we're hopeful that we can work with him in that process," he said.
"To Northvolt employees, I want to say ‒ your determination and your accomplishments have been nothing short of extraordinary. I want to extend my deepest gratitude to you all, my appreciation to you all, my appreciation also to customers, investors, lenders and partners who believed and supported Northvolt's mission," he added.
"I also want to extend the same gratitude to all the support we received from the communities in Skellefteå and in Västerås. I am sorry we have ended this chapter today."
He added that he hopes the work Northvolt has started can "continue to drive change in this industry".
According to the press statement, the company was "unable to secure the necessary financial conditions to continue in its current form".
"The Board therefore determined that this is the only available solution while the company pursues all realistic options to obtain financing to continue operating during the Swedish bankruptcy process."
The company confirmed that the bankruptcy filing will affect Northvolt AB, Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB and Northvolt Systems AB, all based in Sweden.
Northvolt Germany and Northvolt North America are not filing for bankruptcy, it added, although they could still be affected as subsidiary companies of Sweden-based Northvolt AB.
CRISIS AT NORTHVOLT:
In a bid to cut costs, Northvolt announced in September 2024 it would slash up to 1,600 staff – almost a quarter of its workforce – as well as closing parts of its factory in Skellefteå and terminating expansion plans both in Skellefteå and in Borlänge. The company’s CEO, Peter Carlsson, resigned at the beginning of the year.
It filed for Chapter 11 bankruptcy protection in the United States late last year to enable it to restructure its debt and reorganise its business. The battery maker said in US filings that it owed $5.8 billion.
After the press conference, Carlsson, who has kept a low profile this year, gave a rare interview in which he expressed his sadness at the collapse of the company he co-founded.
"I am so so sorry. I know that many people will want to keep working and I hope that this is what happens," he told SVT.
But he became combative when the reporter asked him how he felt about the fact that he, personally, had earned 200m kronor from the company before it went bankrupt.
"That is an extremely stupid question," he said. "I will not comment on that."
Comments