Rapid development and liquidity crisis
Northvolt Ett Expansion AB did not employ workers directly, but managed the construction plant in Skelleftea in northern Sweden. All work has been suspended as part of broader measures aimed at financial stabilization of the company, according to Tuesday’s statement.
The Swedish battery manufacturer fell into a rapidly developing liquidity crisis after production collapsed at its main plant near the Arctic Circle in Sweden. The company, wanting to compete with cheaper producers from China, very quickly and aggressively expanded its operations to Europe and North America, which would allow it to increase scale and reduce costs. This year, however, due to the decline in demand for electric cars in key markets, the situation has deteriorated significantly.
The company added that the bankruptcy trustee will now be in contact with all contractors of the entity that filed for bankruptcy.
“Northvolt Group continues to conduct dialogue with interested parties in order to further cooperate on the Group’s current activities,” we read in the information.
Weaker demand for electric cars
Deteriorating demand for electric cars is taking its toll on many automotive companies around the world. Demand in Europe dropped sharply in August. Germany was largely responsible for such disastrous data, where deliveries of electric vehicles in August fell by as much as 69%. As a result, such German automotive giants as Volkswagenare ready to close domestic plants.
From the wheeland Swedish Volvo Due to problems on the demand side for electric cars, it withdrew from its main goal, which was to sell only electric cars by the end of this decade. As a result, combustion engines will remain in the company’s offer for longer.
