By Paul Homewood
h/t Paul Kolk
Another one bites the dust!
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Swedish electric vehicle (EV) battery manufacturer Northvolt filed for bankruptcy after the company’s dreadful liquidity position left the business with only one week’s worth of cash to fund its operations.
The Chapter 11 petition was filed at the U.S. Bankruptcy Court for the Southern District of Texas on Thursday. The company listed assets and liabilities in a range of $1 billion to $10 billion, with creditors estimated to be between 1,000 and 5,000. Established in 2016 in Stockholm, Northvolt is an energy-storage company that manufactures lithium-ion batteries.
A leading manufacturer in the European Union, Northvolt competes with China’s BYD and CAT to supply batteries to carmakers in the region. As such, the bankruptcy of Northvolt presents a challenge to Europe’s ambitions to counter Chinese EV dominance.
