ABB is one of many minority shareholders in the Swedish group that is struggling to survive. To stay afloat Northvolt needs to find $300 million in the short termbut an increasing group of shareholders do not want to continue financing the failing Swedish battery manufacturer.
Talks on an emergency financing package, combined with contributions from shareholders, lenders and customers, are in the final stages, Bloomberg News reported last week.
An ABB spokesman declined to comment on its financial situation. “We are confident that Northvolt has initiated appropriate measures to address the challenges the company is currently facing,” the representative added in comments emailed to Bloomberg.
However, unofficially, Bloomberg learned from people who asked to remain anonymous that sSwiss industrial group ABB does not plan to further finance battery manufacturer Northvolt.
ABB is not the only one who rules out further investment in Northvolt
ABB joins a list of other investors and customers who have also ruled out putting more cash into a new round of emergency financing. This highlights how tight Northvolt’s financial situation has become.
On Wednesday, the CEO Volvo Car told Bloomberg that the automaker would not put up more capital. Owners expressed similar views Norrsken VC, BMW AG and Skelleftea Kraft.
Despite this unfavorable news, Northvolt founder Harald Mix and its CEO Peter Karlsson said they would provide fresh capital.