Swedish battery maker Northvolt is making considerable progress in securing a new financing package, the company confirmed on Monday. In recent weeks, Northvolt has been in discussions with investors and lenders to acquire short-term funding, according to three sources familiar with the matter. These efforts aim to stabilize the company’s finances. As of now, the company has already begun gathering signatures for a funding deal that could exceed $300 million and might be finalized before the end of the month, a source directly involved in the discussions stated. This package is expected to provide sufficient funds for Northvolt until next year. The person speaking on the matter requested anonymity due to lack of authorization to discuss the topic publicly.
“We have made significant progress towards securing a financial solution for Northvolt, and we are engaging in constructive dialogues with key stakeholders, including customers, suppliers, shareholders, and lenders,” a Northvolt spokesperson told Reuters. “We are now working intensely to conclude these financing discussions in a timely manner.”
Northvolt, once seen as Europe’s leading hope for a home-grown electric vehicle battery supplier, has been facing financial challenges due to production issues, lower demand, and competition from China. The company has been forced to cut jobs and downsize operations to stay afloat.
