Northvolt asked more than 100 shareholders at a meeting this month to provide $1.29 billion (€1.15 billion) over the next two years to help restore the bankrupt Swedish battery maker’s business, two sources familiar with the matter told Reuters.
Considered Europe’s best shot at a home-grown electric vehicle battery champion to compete with Chinese rivals BYD and CATL, Northvolt filed for Chapter 11 U.S. bankruptcy in November after talks for fresh funding with investors collapsed amid production and other problems.
Former CEO and co-founder Peter Carlsson told journalists in November that the company would need between $1 billion and $1.2 billion in the long term, but did not give a specific timeframe.
The request for funding to last until 2027 comes as Northvolt intensifies a search for investment before its cash reserve runs out in February.
In response to Reuters‘ questions, Northvolt said “numerous parties” had submitted indications of interest in its financing process.
“The company and its advisers are engaged in productive conversations and due diligence with both strategic and financial investors,” a spokesperson said, declining further comment.
It is unclear how shareholders responded to the request or whether they will stump up any cash. The sources declined to be identified because the details are confidential.
Northvolt‘s shareholders include Goldman Sachs and BMW, as well as customers Volkswagen and Scania. It is not clear which investors were present at the meeting.
The two sources said the shareholders were told the company had sufficient funds until at least mid-February, largely in line with information in the company’s bankruptcy court filing.
A third person familiar with the situation said Northvolt would only exhaust its cash towards the end of February.
Chinese, South Korean or Japanese battery makers are the best hopes for a rescue of the company given their expertise in EV battery making, three other sources close to the matter said.
If Northvolt is able to find more funds, it is likely to come from a mix of financial and strategic investors, and a combination of existing and new stakeholders, another person with knowledge of the situation said.
At a bankruptcy hearing on Tuesday, Northvolt attorney Jimmy Ryan said financing talks were “currently ongoing” and Northvolt intends to raise near-term cash by divesting “several” non-core businesses.
U.S. Bankruptcy Judge Alfredo Perez on Tuesday approved Northvolt‘s sale of its stake in battery recycler Hydrovolt to Norwegian aluminium maker Norsk Hydro for 78 million Norwegian crowns ($6.79 million or €6.51 million).
