According to three people familiar with the situation, Northvolt, a Swedish manufacturer of batteries for electric cars, is in discussions with lenders and investors to get about 200 million euros ($218 million) in short-term capital. The company wants to stabilize its finances.
One of the insiders stated that the conversations have been going on this week and that the company’s long-term goal is still to raise more money. The sources asked not to be named due to the secret nature of the information.
Northvolt restated its statement from September 24 on Friday, stating that it had achieved great strides in its fundraising efforts in the last few weeks. It declined to provide more commentary.
In only a few short months, Northvolt has transformed from being Europe’s greatest chance at producing a domestic electric vehicle battery champion to a fund-raising race.
A second source stated that although it was uncertain how long the additional money under discussion might support the manufacturer of lithium-ion batteries, in the long run, it would not be sufficient.
Northvolt announced late on Thursday that it will have the funds to pay taxes that are due on Monday, totaling 287 million Swedish crowns ($27.59 million). Prior to this, Reuters had revealed that it was looking to raise money by selling extra battery components.
The firm said last month that it will reduce its workforce and lay off employees due to manufacturing issues, weak demand, and competition from China.
As shareholders, consumers, and lenders consider sources of assistance, new short-term funding may consist of a combination of loans and battery pre-orders from customers, according to the first source.
There is a verbal agreement for 150 million euros in finance, according to that source and a third party, but no formal agreement has been reached yet.
