Sheltered from its creditors, Northvolt AB is turning to China in the hope of reviving itself. The young company is in talks with the battery giant CATL, according to the daily Today’s News.
Published at 3:44 p.m.
Discussions between the two parties reportedly began over the summer, as the Swedish battery cell maker implemented restructuring measures due to its liquidity crisis.
However, the Swedish daily does not cite the origin of its sources. Northvolt was considered one of the European hopes in the battery niche to compete with China. Its survival could now go through a partnership with the Middle Kingdom.
With its back against the wall, Northvolt turned, on November 21, to Chapter 11 of the American bankruptcy law, a process to restructure its debt and refinance itself. In debt of more than 8 billion CAN, it only had 40 million left when it took shelter from its creditors.
The North American subsidiary of Northvolt, which is planning a battery cell mega-factory in Montérégie, a southern suburb of Montreal, is not part of this process.
It has 330 million, enough to continue its activities for 18 months. Ultimately, however, the company’s North American subsidiary will have to convince investors to finance its Quebec ambitions.
The Swedish cell producer has found itself at the heart of a severe liquidity crisis since quality and productivity are not yet there in terms of production in its mega-factory in northern Sweden, considered its backbone. .
Northvolt was also forced to refocus its business model to reduce expenses. It also pulled the plug on a major project in Sweden, in addition to announcing the layoff of 1,600 people, which represents nearly a quarter of its global workforce. The expansion of its complex in the north of the country has also been put on hold.
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