(Bloomberg) -- Sweden’s Northvolt AB is likely to complete an expected funding round of about $300 million next week, as the troubled battery-cell maker races to get its finances on a more stable footing, according to a person familiar with the matter.
The final steps are being drawn out because of the complex documentation needed for the deal involving customers, investors and lenders, said the person, who asked not to be identified discussing a private matter. While the bailout is progressing, the timeline to complete the new package may yet move, the person added.
Earlier this month, Bloomberg News reported that Northvolt was closing in on rescue funding that includes debt and equity, citing people familiar with the matter. The infusion would buy time for the cash-strapped manufacturer to stabilize production and line up longer-term financing.
A representative for Northvolt declined to comment on the timing of the new financing.
To illustrate the complexity around the company’s existing debt financing, a total of 23 commercial banks as well as the European Investment Bank and the Nordic Investment Bank worked on the company’s $5 billion green loan in January, which is in turn guaranteed by export credit agencies.
In a boost for the struggling manufacturer, Volkswagen AG’s truckmaking brand Scania CV AB said Monday that it plans to equip all its future electric trucks with Northvolt batteries.
“We are now shifting over. For the future, all of our currently sold battery electric vehicles will come with Northvolt cells,” Scania Chief Executive Officer Christian Levin said in a call with reporters.
©2024 Bloomberg L.P.