ENERGY
German Industry Minister and Vice Chancellor Robert Habeck is “cautiously optimistic” about troubled Northvolt’s plans for a factory in Germany.
Northvolt’s problems must be taken seriously, but they are technically possible to solve, according to Habeck.
The German minister’s statement about Northvolt was made in an interview with the German news agency DPA on Saturday.
After months marked by an increasingly acute financial crisis, Northvolt filed for bankruptcy protection in a court in Texas, USA, on Thursday. Northvolt’s CEO and co-founder Peter Carlsson announced the day after the application that he was resigning.
“Can end well”
Court documents in Texas show, among other things, that Northvolt has paused plans for battery factories in Germany and Canada, projects that are managed by subsidiaries that are not covered by bankruptcy protection.
– The procedure they have chosen now can end well, Habeck told DPA, according to the Bloomberg news agency.
Under bankruptcy protection, Northvolt wants to reconstruct a mountain of debt of around SEK 60 billion and bring in new capital on top of the SEK 90 billion already pumped into the company by the owners – led by Volkswagen and Goldman Sachs.
Peter Carlsson said in connection with the announcement that he will move to board work and a more advisory role within Northvolt that upwards of SEK 13 billion will be needed to finance the business plan the company wants to move forward with.
Search for funding
Just a little over a year ago, Northvolt invited investment banks to discuss a possible IPO, where there was talk of a valuation of around 20 billion dollars (equivalent to 220 billion kroner). However, the stock market plans were scrapped after just a few months.
After a series of production setbacks, including for the truck manufacturer Scania – and then BMW’s decision to withdraw a large order in June – things have gone downhill for the company. The autumn has been marked by an unsuccessful search for new multibillion-dollar financing, major staff cuts, closed projects and bankrupt subsidiaries, as well as accusations of breach of contract from partners such as the car manufacturer Volvo Cars.
Source: www.nyteknik.se
