In financial difficulty, Northvolt has reached an agreement to sell its factory in California to an American battery company.
• Also read: “Strategic review”: Northvolt closes California factory
• Also read: Northvolt’s largest shareholder, Volkswagen, plans to close three factories
The Swedish battery manufacturer acquired the facilities concerned in 2021, as part of its takeover of the Cuberg company. In November 2023, there was even talk of this subsidiary possibly establishing its manufacturing activities in Quebec.
Things have changed a lot since then.
An agreement has just been concluded to sell this factory to the young American company Lyten, which has committed to investing US$50 million over the coming years to buy Northvolt’s equipment, take over its construction lease, and expand the facilities. facilities, according to information from Bloomberg.
Last August, Northvolt decided to close this research and development center and repatriate its activities to Sweden. Some 200 employees then lost their jobs.
In search of billions of dollars
Northvolt has been fighting for its survival for several months now. The company must find billions of dollars in short- and long-term financing in a very short time, and negotiations with investors and customers are ongoing.
For comparison, Lyten managed to raise more than US$425 million, according to Bloomberg. The American company is betting that using sulfur, an inexpensive and abundant resource, will allow it to manufacture batteries more cheaply and thus make American production more competitive on the market.
Despite the strong headwind, the Swedish company continues to maintain that its battery factory project in Quebec is still on the cards. The Legault government has, however, indicated that it expects delays of 12 to 18 months.
Movements on the board of directors
Earlier this week, Sven Fuhrmann, who represented Volkswagen on the Northvolt board of directors, resigned from this position. With 21% of shares, the German car manufacturer is Northvolt’s largest shareholder.
“Volkswagen is a long-standing partner of Northvolt, with whom we work closely, as well as with its subsidiaries that we serve,” commented a Northvolt spokesperson in a written statement to the Journal.
– With the collaboration of Francis Halin
