Northvolt finds money for tax bill, avoids bankruptcy

By Lennart Håkansson, North Sweden Business October 16, 2024
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On Monday morning, battery manufacturer Northvolt announced that the company has paid this month’s taxes and fees to the Swedish Tax Agency. This avoids bankruptcy or company reorganisation, for the time being.
Northvolt Fabrik
Northvolt’s factory in Skellefteå. Image: Northvolt

If the tax of SEK 287 million had not been paid on time, the company would have been forced to file for bankruptcy or company reorganisation, otherwise the directors could have become personally liable for the company’s debts.

The tax paid allows the company to continue operating for another month, until the next tax payment. In two weeks’ time, employees will receive their salaries.

Northvolt’s strained financial situation continues. The company needs to raise more capital. Last spring, it tried a SEK 15 billion rights issue, but it didn’t work out. Now it hopes to raise at least half in a new round.

At the same time, Northvolt has implemented drastic cost reductions. 1,600 employees have been laid off and the subsidiary Northvolt Ett Expansion AB has been declared bankrupt, which has affected subcontractors who are now not being paid.

The battery manufacturer’s fundamental problem remains: it has not yet managed to start battery production at its Skellefteå plant according to the original plan. Production is much lower and delayed, which means that revenues are not what would be required for profitability.