The Swedish battery manufacturer Northvolt AB has announced on Wednesday that it sells its participation in the joint company Novo Energy to its partner Volvo Cars, which implies that the Swedish Automobile manufacturer, whose owner is the Chinese conglomerate Geely, will assume the total property of This company.
Both manufacturers formed Novo Energy in 2021 to build a battery factory in Gothenburg, on the west coast of Sweden. However, last year Northvolt presented its formal bankruptcy request in the United States. Due to this step and the restructuring process in which the battery manufacturer is located, Volvo Cars found Northvolt in breach of contract in October and warned that he would acquire participation in Novo Energy.
This transaction under the contract of purchase of shares is subject to the authorization of the bankruptcy court of the United States for the Southern District of Texas and the Inspection of Strategic Products of Sweden.
Last week, Novo Energy had announced in a statement that reduced its workforce to cut costs and in response by 30% to “the changing market conditions and a modified business plan.”
“We are making this difficult but necessary decision to adapt our organization due to the changing market conditions, and we do not take it lightly,” said the general director of Novo Energy, Adrian Clarke.
In addition, this sale is Northvolt’s last to get rid of projects and bus
In addition to this, Volvo Cars and Northvolt AB announce that they have signed a framework agreement that explores how companies could work together in the future, including possible future supply opportunities in North America.
Financial problems
Last November, the CEO of Northvolt, Peter Carlsson, announced his resignation after the European Batteries manufacturer for electric vehicles has presented his formal bankruptcy request in the United States.
The company, one of the most valuable private technology in Europe, requested voluntary bankruptcy in in order to restructure its debt, reduce its business and ensure a “sustainable basis” to continue its operations.
This restructuring process is expected to end in the first quarter of 2025. At the moment, Norhtvolt keeps its ETT factory (Sweden) operational. The objective of the Scandinavian company is to be able to access a financing line of about 234 million euros of which approximately, 138 million will be in cash and another 95 million through financing of the debtor in possession, that route that allows them to bankruptcy companies welcomed to Chapter 11 of the United States Bankruptcy Law continue to operate.
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