Northvolt, the Swedish battery producer with plans to construct a $7-billion manufacturing facility in Quebec, has declared bankruptcy in Sweden.
The corporate stated in a media launch that the choice to declare bankruptcy was taken after “an exhaustive effort to discover all obtainable means to safe a viable monetary and operational future for the corporate.”
Northvolt has “skilled a sequence of compounding challenges in latest months that eroded its monetary place, together with rising capital prices, geopolitical instability, subsequent provide chain disruptions, and shifts in market demand,” the discharge says.
The corporate says its North American operations are solvent.
Now, a court-appointed trustee will decide the future of Northvolt’s companies and property, together with know-how and manufacturing amenities, the corporate stated.
It was not instantly clear how the corporate’s bankruptcy would have an effect on the future of massive $7-billion electrical automobile battery plant Northvolt is constructing in the Montérégie area on Montreal’s South Shore.
In 2023, the Quebec authorities pledged $2.9 billion in financing to safe the cope with Northvolt. Ottawa dedicated as much as $1.34 billion to construct the plant and one other $3 billion price of different incentives.
To date, the Quebec authorities has invested $270 million in the undertaking and the provincial pension investor, the Caisse de dépôt et placement du Québec (CDPQ), has additionally invested $200 million.
Quebec Economic system Minister Christine Fréchette stated in a publish on X that the federal government was disillusioned in the state of affairs, however stated they had been evaluating their choices. She has beforehand stated Northvolt’s bankruptcy filings will not have an effect on the Quebec battery plant.
“Our want is that the controller will begin on the lookout for a purchaser who will make investments to take over all North American actions and relaunch the Montérégie undertaking,” she wrote.
Regardless of the bankruptcy of Northvolt’s mum or dad firm in Sweden, Northvolt North America, a subsidiary of the Swedish firm, stated in a media launch that it stays solvent and intends to honour its obligations and meet its monetary commitments.
The Swedish authorities has indicated that it might step in to help the corporate.
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