There is sand in the gears in negotiations between Northvolt and its shareholders aimed at allowing the Swedish battery cell maker to secure short-term financing worth several hundred million, it has been confirmed The Press.
Posted at 2:02 p.m.
The talks are currently in a phase described as “difficult,” according to people familiar with the matter who are not authorized to speak publicly on the subject. It was not possible to know precisely the sticking points, but there would always be several elements to resolve.
A sign of the complexity of the discussions, Northvolt, at the heart of a liquidity crisis, would have called a meeting with its shareholders on Wednesday, according to the Bloomberg agency. The Swedish daily Today’s Industry went further to argue that the talks hit a wall last week, which Northvolt denied.
In a statement sent to The Pressthe American investment bank Goldman Sachs, second largest shareholder (19.2%) of the Swedish manufacturer, which is still planning a 7 billion mega-factory in Quebec, has assured that it is still involved.
“We are actively collaborating with Northvolt and all its stakeholders to find a solution for the long-term future of the company,” said the financial institution. We want Northvolt to succeed. »
A few weeks ago, everything indicated that an agreement to offer some oxygen was within reach. However, hesitation seems to have set in in a context where the electric shift is taking place less quickly than expected in Europe and in North America, in particular.
Last month, European truck maker Scania offered a vote of confidence to Northvolt by announcing that all its future trucks will be equipped with batteries built by the company. According to our information, the commitment of other clients to do the same is key to concluding an agreement.
A little air
With its coffers almost dry, Northvolt was forced to refocus its business model to reduce its expenses. It also pulled the plug on a major project in Sweden, in addition to announcing the layoff of 1,600 people, which represents almost a quarter of its global workforce. The expansion of its complex in the north of the country has also been put on hold.
What is a battery cell used for?
A lithium-ion battery, like one found in a car, is essentially an assembly of individual battery units, called cells. They are connected in series by an electronic circuit. The number and size of each cell helps determine the amount of electricity that an electric vehicle battery is able to store.
The company wants to obtain emergency financing of 300 million, which will give it some time to prepare a much larger financing operation in the medium term.
Before untying the purse strings, Northvolt shareholders want to have a chance to repay themselves, if the Swedish company were to become insolvent. Essentially, they want to have their say on the fate of the subsidiaries of the young company, including the one which is piloting the megaproject under construction which straddles Saint-Basile-le-Grand and McMasterville.
They would thus interfere between the parent company, established in Sweden, and all of its subsidiaries, which is currently not the case.
Read A favor to save the furniture?
Since the start of its global restructuring, Northvolt has repeated that its Quebec complex will see the light of day. We will have to continue to be patient before we have the correct information on the form that the project will take.
“I ask you for a few more weeks of patience,” said the co-founder of Northvolt and director of the North American branch Paolo Cerruti, on October 28, on the sidelines of a conference in Montreal. I have absolutely confidence that the Quebec project will take place, that we will be here, that we will develop this project as we had planned. »
One thing is certain, the Legault government seems to be starting to stomp its foot. In interview with The Press On November 5, Minister of the Economy, Innovation and Energy Christine Fréchette made no secret of the fact that she was eager to see the company take stock.
“Well, I can’t wait,” she said. I can’t wait to see the new strategy. We expect news shortly. They told us in fall class. There, we changed the time, autumn is well underway. »
Public money granted to Northvolt so far:
- 240 million: Government loan (Quebec) for the purchase of land in Montérégie
- 270 million: Quebec takes a stake in Northvolt
- 200 million: Loan from the Caisse de dépôt et placement du Québec
Quebec and Ottawa offered 2.74 billion to finance the construction of the megacomplex located in the southern suburbs of the metropolis.
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- 4.6 billion
- Production subsidies that could be paid to Northvolt by Quebec and Ottawa. This money will not be disbursed before the factory starts up.
governments of Quebec and Canada
