(Bloomberg) -- The Swedish government maintained that it has no plans to rescue ailing battery-cell maker Northvolt AB, instead pinning its hopes on a rescue package funded by shareholders.
Time is running out amid a cash crunch after the firm struggled to get production off the ground. A $300 million emergency deal has yet to materialize as talks between the company, lenders and investors are complicated by uncertainty about the market for electric cars.
“There won’t be any government ownership of Northvolt,” Finance Minister Elisabeth Svantesson said in an interview on Friday. “I don’t want to speculate about what may happen, but the important thing for us as a country is that the technology, human resources and skills remain in Sweden and in Europe.”
On Thursday, business daily Dagens Industri reported, based on unnamed sources, that Northvolt may seek Chapter 11 bankruptcy protection in the US. The company declined to comment on the report, except to say that it is “constantly discussing different options” and continues the dialog with stakeholders.
Unless a deal is struck with current shareholders, Northvolt may need new owners stepping in, and Chief Executive Officer Peter Carlsson hasn’t ruled out taking on board investors from China or other Asian nations. That could undermine the company’s credentials as a homegrown European producer that can compete with Chinese battery powerhouses including Contemporary Amperex Technology Co. Limited, or CATL.
Svantesson said any Chinese investment in Northvolt would likely be tested under a law introduced late last year that allows government authorities to block foreign ownership of sensitive businesses.
“However, I hope there are solutions to be found that allows us to keep competence and technology here, while also getting owners that take a long-term view on this, which is important from a security and supply perspective as well,” she said.
--With assistance from Rafaela Lindeberg.
©2024 Bloomberg L.P.