STOCKHOLM, (Reuters) – Sweden’s Northvolt said on Thursday it will seek U.S. Chapter 11 bankruptcy protection as the cash-strapped battery start-up seeks to sort out its finances.
The company went in a matter of months this year from being Europe’s best shot at a home-grown electric-vehicle battery champion to racing to stay afloat, hobbled by production problems and as funding ran out.
Northvolt, whose motto is “make oil history”, has received more than $10 billion in equity, debt and public financing, and counts Volkswagen, with a 21% stake, and Goldman Sachs, with a 19% holding, as its biggest owners.
Here is a timeline of major events.
2016-2018
Company founded in 2016 as SGF Energy by two former Tesla executives and venture firm Vargas Holding.
It becomes Northvolt in 2017, receiving equity funding of $12 million that year and an additional $120 million in 2018.
The group in 2017 announces plans to build $4 billion lithium-ion battery gigafactory Northvolt Ett and research facility Northvolt Labs. It partners with BMW and truck maker Scania.
It says in October 2018 it is developing a battery systems factory in Poland.
2019
Volkswagen, BMW and Goldman Sachs are among investors in a $1 billion equity capital raise. Volkswagen takes a stake of about 20%, becoming the biggest owner, with battery production for the automaker planned for late 2023 or early 2024.
2020
Northvolt raises $600 million in equity and $1.6 billion in debt. BMW signs a 2 billion euro ($2.16 billion) contract for battery cells to be produced from 2024.
2021
Volkswagen places a 10-year, $14 billion battery cell order with the company, Northvolt says in March.
In the same month it announces the acquisition of California-based lithium-metal battery start-up Cuberg.
Later that year the group raises $2.75 billion in equity to finance an expansion of Northvolt Ett, aiming for the plant to have annual capacity of 60 gigawatt hours, enough for some one million cars.
It also establishes the Novo joint venture with Volvo Cars, with plans for a 50 GWh factory, and in December announces that it has formed the Aurora lithium joint venture with Portugal’s Galp.
The company says in December it has assembled the first lithium-ion battery cell at Northvolt Ett.
2022
Sweden is turning into a battery-making superpower, the then-industry minister tells news agency TT.
Northvolt announces in February plans for gigafactory Northvolt Fem in Sweden. This is first meant to be a battery cell factory, then an active cathode material plant. It is cancelled in 2024.
The group also in 2022 delivers the first battery cells to customers.
It says in July it has raised $1.7 billion in convertible debt for factory rollouts.
2023
Sources tell Reuters in February that Northvolt plans to hire banks for an initial public offering that could take place within 12 months and value the company at more than $20 billion. The IPO is later postponed.
The group says in August it has raised $1.9 billion in convertible debt to finance expansion in Europe, North America.
Northvolt announces plans in September for the $5 billion Northvolt Six battery plant in the Montreal region of Quebec, Canada.
It touts a $50 billion order book and almost 6,000 employees.
2024
January – Northvolt inks a $5 billion loan package to pay for the second stage of Northvolt Ett, a tripling of capacity. Sweden issues credit guarantees for $1.5 billion of the package, but the money is not paid out as construction is halted.
March – In the presence of German Chancellor Olaf Scholz, Northvolt starts construction of Northvolt Drei in Germany, with planned annual production capacity of 60 GWh. The plant wins 900 million euro in subsidies.
June – BMW cancels a 2 billion euro battery order signed in 2020. Sources tell Reuters the reason is that Northvolt cannot deliver on time.
July – Northvolt launches a strategic review of its business, with the CEO saying the company expended too aggressively.
August – The group shuts Cuberg in California, concentrating R&D in Sweden.
Sept. 9 – Northvolt says it will focus on battery cell production. It halts cathode active material production, effectively shelving plans to become end-to-end self-sufficient in the battery-making value chain.
The group says planned battery plants in Canada and Germany may be delayed.
Sept. 16 – Sweden’s prime minister says the government will not take a stake in Northvolt.
Sept. 23 – The company announces layoffs of 1,600 employees in Sweden and cancels the Northvolt Ett expansion, adding it will concentrate on raising production at the current plant.
Sept. 24 – Northvolt says Northvolt Ett produced a record 60,000 battery cells in one week, a tiny fraction of the plant’s capacity, according to analysts, as production problems persist.
Oct. 8 – The Northvolt subsidiary in charge of expanding the plant in Sweden files for bankruptcy with billions of crowns in unpaid debt.
Oct. 9 – The head of Northvolt Ett steps down after 15 months in the job.
Oct. 10 – The company seeks to sell its stockpile of surplus battery-making materials, sources tell Reuters.
Oct. 11 – The group is in talks with investors and lenders to secure about 200 million euros in funding, sources tell Reuters, far less than the $1.4 billion that Swedish media reported earlier in the year that Northvolt hoped to raise.
Oct. 21 – Northvolt says it is making significant progress on financing. A source tells Reuters the company aims to raise more than $300 million, which could give it funds until next year.
Oct. 31 – Volvo Cars says it is seeking to take full control over Swedish battery-making joint venture NOVO, as Northvolt is no longer contributing funds.
Nov. 11 – Northvolt says the head of investments at Volkswagen is leaving the group’s board.
Nov. 15 – Northvolt has considered seeking U.S. Chapter 11 bankruptcy protection as one of several potential survival options, two sources familiar with the matter told Reuters.
Nov. 18 – Northvolt has missed some in-house production targets and has curtailed production at its plant in northern Sweden, according to internal company documents reviewed by Reuters and company sources.
Reporting by Anna Ringstrom and Marie Mannes; Editing by Terje Solsvik and Jan Harvey
