Catastrophic debts drive lithium battery manufacturer into bankruptcy

Lithium battery manufacturer Northvolt went bankrupt, taking Scania and VW with it

How are we? announced a few months ago, the largest European manufacturer of lithium batteries company Northvolt, whose facilities are located in the north of Sweden, failed to get out of insolvency. On Thursday, he filed for bankruptcy due to his $5.8 billion debt.

The picture of Northvolt’s liquidity has become terrible”, according to financial experts and creditors, among whom are Scania and Volkswagen as the largest shareholder with over 20% ownership.

Scania took out a $100 million loan in order to pursue bankruptcy and pay off a $50 million debt owed to employees, while VW declined to comment on its plans.

Scania hopes that after the bankruptcy and restructuring, Northvolt would still be able to get back on its feet and start production under the bankruptcy trustee in the second half of the next year.

Source: vrelegume.rs