Northvolt files for Chapter 11 reorganization in the United States

Northvolt, a Swedish electric vehicle battery manufacturer, has filed for Chapter 11 bankruptcy in the U.S. due to severe financial difficulties on 21 November, 2024[1] , including a $1.2 billion loss in 2023 and the termination of a major contract with BMW[2][3]. The company aims to restructure its debt and continue operations, with plans to emerge from bankruptcy by early 2025[2][4]. Despite challenges, Northvolt's factories in Sweden will remain operational during this period, fulfilling existing commitments while seeking new funding options[3][4]. The bankruptcy reflects broader struggles in the electric vehicle battery sector amid increasing competition from Chinese manufacturers[2][3].

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Citations:

[1] Northvolt | https://northvolt.com/articles/chapter11/

[2] Northvolt, Europe’s Hope for a Battery Champion, Files for Bankruptcy https://www.nytimes.com/2024/11/21/business/northvolt-battery-bankruptcy.html

[3] Northvolt Files for Bankruptcy as Cash Dwindles to $30 Million https://finance.yahoo.com/news/northvolt-files-bankruptcy-blow-europe-174730086.html

[4] Northvolt files for Chapter 11 reorganization https://northvolt.com/articles/chapter11/

[5] Northvolt - Wikipedia https://en.wikipedia.org/wiki/Northvol t