Northvolt's entry into Chapter 11 bankruptcy protection comes amid challenges in ramping up production and a significant debt burden of about $5.8 billion.
This decisive step will allow Northvolt to continue its mission to establish a homegrown, European industrial base for battery production, stated Tom Johnstone, interim chair.
With new funding of $245 million, including a debtor-in-possession loan, Northvolt intends to restructure its operations and capture ongoing market demand for vehicle electrification.
The company's struggle reflects broader issues in the EV market, as diminished demand has impacted their ability to scale production despite raising over $15 billion since 2016.
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