The Northvolt lithium battery manufacturing company will close its operations in Sweden by the end of June, according to the court-appointed administrator for the company.
This week, the Swedish press revealed that Northvolt, once considered one of the most valuable startups in Europe, is about to lose its largest and last customer, the heavy vehicle manufacturer Scania.
The court administrator of Northvolt, Mikael Kubu, confirmed that the company will indeed close operations at its factory in Skellefteå, Sweden “The bankrupt estate has managed to continue battery cell production with a limited number of employees, supported by the only existing customer”, Kubu said in a statement.
However, this arrangement is not sustainable in the long term for a single stakeholder, nor for the bankrupt estate itself. Consequently, a gradual reduction in battery cell production will be initiated, with the aim of ceasing production by June 30. Until then, Northvolt will continue to produce batteries in an attempt to find a buyer.
Once considered an example among the most promising climate technology companies in Europe, Northvolt has struggled to stay afloat. In March of this year, the battery manufacturer filed for bankruptcy in Sweden, bringing an end to its long financial drama. The bankruptcy administrator, Mikael Kubu, attempted to find a buyer for the factory and at that time proceeded with layoffs to keep the company operational.
