Northvolt AB's subsidiary company, Northvolt Ett Expansion AB, filed for bankruptcy on October 8 following the suspension of its major expansion project in September 2024. This decision is directly related to the financial state of the subsidiary, which was tasked with managing the Ett expansion construction project. However, the bankruptcy only affects Ett Expansion AB without impacting other parts of Northvolt’s operations.
The bankruptcy filing stems from a decision that was part of Northvolt’s strategic realignment in response to economic challenges impacting its operations in Sweden. As a result, the subsidiary overseeing the expansion, Ett Expansion AB, was placed in financial distress, prompting the bankruptcy filing at the District Court of Stockholm.
Northvolt has clarified that the bankruptcy pertains only to Ett Expansion AB and does not extend to other entities within the Northvolt Group, comprising over 20 legal entities. The Group continues its core operations, focusing on its primary manufacturing facility, Northvolt Ett, which is operational.
While the suspension of the expansion project is a setback, Northvolt AB is shifting its focus to ramping up production at the first phase of Northvolt Ett, a large-scale battery manufacturing plant in Skellefteå, Sweden. This facility is crucial for fulfilling commitments to Northvolt’s automotive customers, especially as demand for electric vehicles grows.
The Ett expansion was initially planned to add 30 GWh of annual cell manufacturing capacity, but the challenging macroeconomic environment forced Northvolt to reassess its priorities. By reallocating resources, the company is ensuring that the fully operational phase of Northvolt Ett can ramp up production effectively. Since the start of 2024, production has increased threefold.
Despite these challenges, Northvolt remains committed to its long-term goal of establishing a solid European base for battery production. The company’s leadership believes that by refocusing on its core operations, it can lay the groundwork for future growth and stability. Peter Carlsson, CEO and Co-Founder of Northvolt highlighted the importance of these adjustments in response to current market conditions.
“We are facing a difficult moment, but these decisions are necessary to ensure Northvolt’s long-term success. Our focus now is on accelerating production at Northvolt Ett to meet the growing demand for our products. We believe that this strategy will ultimately strengthen our position in the market,” Carlsson said.
