Could Northvolt survive a bankruptcy?

REUTERS/Helena Soderpalm/File Photo Purchase Licensing Rights STOCKHOLM, Nov 15 (Reuters) - Swedish battery maker Northvolt has been discussing the possibility of bankruptcy protection in the United States as one of several options for the cash-strapped company to survive, two people with knowledge of the matter told Reuters.

Why did a Swedish battery manufacturer resign?

A fledgling Swedish battery manufacturer, the darling of European Union funding and touted as a counter to China’s world dominance in batteries, declared bankruptcy in the United States, prompting its CEO to resign.

Is Northvolt preparing for Chapter 11 bankruptcy?

Business daily Dagens Industri, citing unnamed sources, late on Thursday reported that Northvolt was leaning towards Chapter 11 proceedings under the U.S. Bankruptcy Code as a way to sort out its finances.

Will a battery manufacturing startup hit a rough patch?

This isn't the first time a battery manufacturing startup hit a rough patch — A123 Systems’ failure over a decade ago stands out as a prominent example in the U.S. — and it likely won’t be the last. Making lithium-ion cells is fiendishly difficult, requiring deep knowledge of chemistry, production equipment, and quality improvement.

Will Northvolt restructure help the EV battery industry?

Swedish Deputy Prime Minister Ebba Busch said on social media platform X that the government continues to support the EV battery industry and hopes that the restructuring will help turn around Northvolt’s fortunes. Busch told Reuters on Tuesday that the Swedish government had no plans to take a stake in Northvolt.

Does Northvolt have a liquidity problem?

“Northvolt’s liquidity picture has become dire,” the company said in its Chapter 11 petition, filed in U.S. Bankruptcy Court in Houston. The company, which has operations in California, has about $30 million of cash, which can support its operations for only about a week. It has $5.8 billion in debts.