Headlines
Northvolt asks shareholders for $1.3 billion for next two years, sources say
Published by Global Banking & Finance Review®
Posted on January 28, 2025
3 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 28, 2025
3 min readLast updated: January 27, 2026
Northvolt seeks $1.3 billion from shareholders to stabilize operations after filing for Chapter 11 bankruptcy, aiming to secure funds by February.
By Marie Mannes, Christina Amann and Emma-Victoria Farr
STOCKHOLM/BERLIN/FRANKFURT (Reuters) - Northvolt asked more than 100 shareholders at a meeting this month to provide $1.29 billion over the next two years to help restore the bankrupt Swedish battery maker's business, two sources familiar with the matter told Reuters.
Considered Europe's best shot at a home-grown electric vehicle battery champion to compete with Chinese rivals BYD and CATL, Northvolt filed for Chapter 11 U.S. bankruptcy in November after talks for fresh funding with investors collapsed amid production and other problems.
Former CEO and co-founder Peter Carlsson told journalists in November that the company would need between $1 billion and $1.2 billion in the long term, but did not give a specific timeframe.
The request for funding to last until 2027 comes as Northvolt intensifies a search for investment before its cash reserve runs out in February.
In response to Reuters' questions, Northvolt said "numerous parties" had submitted indications of interest in its financing process.
"The company and its advisers are engaged in productive conversations and due diligence with both strategic and financial investors," a spokesperson said, declining further comment.
It is not clear how shareholders responded to the request or if they will stump up any cash. The sources declined to be identified because the details are confidential.
Northvolt's shareholders include Goldman Sachs and BMW as well as customers Volkswagen and Scania. It is not clear which investors were present at the meeting.
The two sources said the shareholders were told the company had sufficient funds until at least mid-February, largely in line with information in the company's bankruptcy court filing.
A third person familiar with the situation said Northvolt would only exhaust its cash towards the end of February.
At the time of filing, the company secured $245 million in financial support for the bankruptcy, including a $100-million loan from Swedish truck maker Scania, its biggest shareholder and customer.
RESCUE
Chinese, South Korean or Japanese battery makers are the best hopes for a rescue of the company given their expertise in EV battery making, three other sources close to the matter said.
Northvolt's lawyers said at a court hearing in December that the company hoped to present a longer-term financing proposal to the bankruptcy judge at a hearing on Tuesday. It is not clear if this will happen and the company did not reply to a request for comment.
If Northvolt is able to find more funds, it is likely to come from a mix of financial and strategic investors, and a combination of existing and new stakeholders, another person with knowledge of the situation said.
(Reporting by Marie Mannes in Stockholm, Christina Amann in Berlin, Emma-Victoria Farr in Frankfurt, Anousha Sakoui in London. Editing by Josephine Mason and Mark Potter)
Northvolt is asking shareholders for $1.29 billion over the next two years.
Northvolt filed for Chapter 11 bankruptcy in November and needs funding before its cash reserves run out in February.
Northvolt's shareholders include Goldman Sachs, BMW, Volkswagen, and Scania.
The company has indicated that it requires funding to last until at least 2027.
Northvolt is looking for both strategic and financial investors to support its financing process.
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