Battery manufacturer Northvolt paid off its tax debt of millions, is looking for new financing

The battery manufacturer has run into financial difficulties due to, among other things, the decline in demand for electric cars and production problems.

Swedish battery manufacturer Northvolt says it has paid its tax debt to the Swedish government. The company’s communications manager tells about it Matt Kataja for the Swedish news agency TT.

The company had unpaid taxes of 287 million kroner, or a good 25 million euros. According to TT, the due date for tax arrears was today.

The struggling company is currently looking for new financing. According to TT, communications manager Kataja said last week that Northvolt has “progressed significantly” in financial negotiations with owners, creditors and customers.

News agency Bloomberg’s according to the company’s goal is to collect a pot of 200 million euros. The sources who spoke to it say that the company had already received verbal promises of financing for 150 million euros.

Swedish government and prime minister Ulf Kristersson have said the government has no plans to help Northvolt financially.

Northvolt has run into financial difficulties due to, among other things, the decline in demand for electric cars and production problems. At the end of September, the company announced that it intends to lay off about a quarter of its personnel, i.e. a total of 1,600 employees.

A thousand layoffs are planned for the company’s Skellefteån factory. In addition, it is planned to reduce 400 jobs in Västerås and 200 in Stockholm. According to TT, negotiations on layoffs are to be completed in the week that started.

In addition to the layoffs, the company has suspended planned expansions to factories and has otherwise reduced its operations. In addition, Northvolt’s subsidiary Northvolt Ett Expansion has filed for bankruptcy.

By Editor

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