The bankrupt Swedish battery giant came out of 2024 with a gigantic deficit. There is a deficit of 40 billion kroner in the accounts.
The Swedish battery giant Northvolt ended 2024 with a gigantic deficit of 40 billion kroner.
This is stated in a statement from the company, which Svenska Dagbladet has been given access to. The statement is one of the items on the agenda for an extraordinary general meeting, which the board of directors will hold on January 8.
The figures emphasize the seriousness of the crisis in which the bankrupt battery manufacturer finds itself. The crisis has also hit the Danish pension fund ATP, which has invested 2.3 billion kroner in Northvolt.
Even before the general meeting, several of the largest investors have written down the value of their investment to zero. In November, investment bank Goldman Sachs declared its investment of 6.4 billion kroner to be worthless.
Shortly afterwards, ATP director Martin Præstegaard told DR that "the value of the company today is not very far from zero". The largest shareholder, Volkswagen, has also made a write-down, although without disclosing the amount.
Northvolt's problems began in the fall when BMW canceled a large two-billion-dollar order. The consequences were immediate. In September, around 1,600 employees were laid off, and a subsidiary subsequently went bankrupt. In November, the parent company filed for bankruptcy protection in the United States.
Since then, the battery manufacturer has struggled to find the necessary capital to survive. According to Svenska Dagbladet, the search for capital is also the main theme of the protest on January 8, where a possible consequence is that operations will cease.
With the two largest shareholders, Volkswagen and Goldman Sachs, no longer placing any value on their investments – and thus the company – it seems difficult to find financing to cover the enormous deficit.
As if that weren't enough, there have been several mysterious deaths linked to Northvolt. One of these deaths has been investigated by Swedish police for possible foul play.
The situation for Northvolt is extremely critical, and it is uncertain whether the company can survive the current crisis. The deficit of 40 billion kroner is a massive blow, and it is doubtful whether investors can be found who are willing to invest in the bankrupt company.
