According to Bloomberg sources, Northvolt did not describe the nature of the suddenly convened general meeting of shareholders.
But shareholder meeting comes after talks on a bridge financing plan for the cash-strapped electric car battery maker stalled. A deal that seemed close to reaching last month has been delayed, one source told Bloomberg.
One source told Bloomberg that negotiations were in a difficult phase, adding that investors and lenders had failed to reach an agreement on a rescue plan despite numerous proposals. One of the controversial points of the rescue package is long-term support.
Northvolt needs at least $920 million to survive
A few weeks ago, there was a lot of confidence that a deal to ease Northvolt’s cash crisis was in its final stages.
Northvolt CEO Peter Carlsson said last week that the company needs over SEK 10 billion ($920 million) in long-term financing, as it scales back expansion plans, sells ancillary projects and works to increase battery cell production in northern Sweden.
On Monday, Volkswagen’s representative on Northvolt’s board resigned, fueling concerns about the strength of the two companies’ relationship. VW has allayed these concerns by saying that Sven Fuhrmann’s departure from the board will not affect the German carmaker’s investment in Northvolt. However, VW has not made clear whether it will name Fuhrmann’s successor or whether it will invest more money in Northvolt.
Northvolt sells US battery factory
Northvolt AB has struck a deal to sell its U.S. factory to a startup that is trying to reduce America’s dependence on China for batteries.
Lyten, a California startup developing lithium-sulfur batteries, will invest $50 million over the next few years as part of a deal to buy battery manufacturing equipment from Northvolt, take over a building lease and expand a facility near San Francisco.
