European EV Battery Maker Files for Bankruptcy
fliptop writes:
The company was negatively affected by slow EV adoption, suffering net losses of $1.2 billion last year:
Swedish electric vehicle (EV) battery manufacturer Northvolt filed for bankruptcy after the company's dreadful liquidity position left the business with only one week's worth of cash to fund its operations.
The Chapter 11 petition was filed at the U.S. Bankruptcy Court for the Southern District of Texas on Thursday. The company listed assets and liabilities in a range of $1 billion to $10 billion, with creditors estimated to be between 1,000 and 5,000. Established in 2016 in Stockholm, Northvolt is an energy-storage company that manufactures lithium-ion batteries.
A leading manufacturer in the European Union, Northvolt competes with China's BYD and CAT to supply batteries to carmakers in the region. As such, the bankruptcy of Northvolt presents a challenge to Europe's ambitions to counter Chinese EV dominance.
[...] Asian manufacturers continued to ramp up production while bringing down battery prices, which put "further stress on newer battery manufacturers like Northvolt." Facing such challenges, the company suffered a net loss of $1.2 billion in 2023.
Previously: South Korean EV Battery Makers Reporting Big Losses as EV Demand Slows
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