Swedish automotive battery manufacturer Northvolt, which declared bankruptcy in March, will cease its remaining battery cell production in Sweden by the end of June, according to the company’s bankruptcy trustee on Thursday.
Mikael Kubu, the court-appointed trustee managing the case, announced that Northvolt Ett, the company’s main facility in SkellefteÃ¥, will gradually cease battery cell production due to the absence of a suitable buyer to assume operations in the future.
Kubu stated that the bankruptcy estate has managed to sustain battery cell production at Northvolt Ett with a reduced workforce backed by an existing customer. However, he acknowledged that the arrangement is not viable in the long run for either the single stakeholder involved or the bankruptcy estate itself. As a result, the facility will gradually phase out its battery cell production by June 30.
Northvolt’s aggressive growth strategy and ambitious global factory plans ultimately led to its collapse. In Sweden, its flagship plant faced operational difficulties and struggled to scale up production effectively as soaring costs burdened the manufacturer. Once regarded as Europe’s strongest prospect for a homegrown battery leader, the company accumulated approximately $10 billion in debt and equity since its founding in 2016.
In November, the company filed for Chapter 11 protection in the United States as its liquidity crisis worsened. However, it was unable to secure the necessary funding to sustain operations. Prior to its bankruptcy, Northvolt sold its industrial battery division to Scania in February.
Later in March, the battery manufacturer filed for bankruptcy in Sweden. Since then, bankruptcy trustee Mikael Kubu has been seeking a buyer for the factory while implementing significant layoffs to keep operations running. Despite the bankruptcy, approximately 900 employees remain at the facility, where a due diligence process is underway in Skellefteå. However, the bankruptcy estate does not currently see a viable opportunity for a buyer to take over production in the near future.
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