Bankrupt Swedish battery plant sets end date for production

The Swedish battery manufacturer Northvolt, which declared bankruptcy in March, will cease production in Sweden by the end of June. This will end the production in Skellefteå, maintained post-bankruptcy due to Scania continuing to purchase batteries at higher prices. However, this arrangement is unsustainable, leading to a gradual production reduction aiming to halt by June 30. Northvolt declared bankruptcy after failing to secure new capital, affecting significant investors like Danish pension companies ATP and Danica Pension, Volkswagen, and Goldman Sachs. Northvolt aimed to challenge Chinese electric vehicle battery producers by investing in production facilities in Canada and Germany, but revenues did not match expectations. The company’s struggles became evident last summer with contract issues, leading to announced layoffs and a subsequent protection request.