Northvolt Owners Vote to Keep Operations Running Amid Financial Rescue Efforts

Northvolt AB shareholders have voted to continue operations while the Swedish electric vehicle battery maker seeks to sort out its finances, it said in a statement. Northvolt went from Europe's best shot at an EV battery champion to seeking bankruptcy protection in a matter of months last year as production problems and dwindling funding took their toll. Its owners, which include Volkswagen and Goldman Sachs, met in Stockholm to vote on whether to liquidate the group or allow the Chapter 11 restructuring overseen by a US court to continue. "This is a positive outcome that demonstrates the support of our shareholders as we seek to realize our ambition and maximize our value," the company said in an emailed statement after the meeting. Northvolt, whose major shareholders include Scania's parent, Volkswagen AG, and Goldman Sachs Group Inc.'s asset management arm, filed for Chapter 11 in the US in November with $5.84 billion in debt in one of the largest bankruptcies of 2024. The company received about $245 million of bankruptcy funding and has been continuing to make battery cells at its main plant in Skelleftea, Sweden, near the Arctic Circle. Its goal is to raise another round of medium-term financing and to exit Chapter 11 by the end of the first quarter. While its mission was to create an independent and sustainable European supply chain for electric vehicles, Northvolt recently said it was discussing potential tie-ups with Asian competitors as it seeks a solution to the company’s crisis.