Sweden's Northvolt said today it had asked for an extension in its bankruptcy protection process in the US, as the beleaguered electric car battery maker seeks to restructure its business.
Financially strained, the company announced in November that it had applied for so-called Chapter 11 bankruptcy protection in the US, saying it expected to complete the restructuring process in the first quarter of 2025.
Northvolt spokesman Erik Zsiga told AFP the company had requested an extension, but still aimed "to finalise the Chapter 11 process in the first quarter."
"But we also need to act to have flexibility if needed," Zsiga said in an email.
Swedish business paper Affarsvarlden reported that Northvolt's lawyers had requested the process be extended until June 19, citing court filings.
Northvolt said in September it was slashing 1,600 jobs - a quarter of its staff - and suspending the expansion of its site, as it struggled with strained finances and a slowdown in demand.
It has been seen as a cornerstone of European attempts to catch up with China and the US in the production of battery cells, a crucial component of lower-emission cars.
Europe accounts for just 3% of global battery cell production, but has set its sights on 25% of the market by the end of the decade.
Northvolt has been plagued by production delays, which in May 2024 led car manufacturer BMW to drop an order worth €2 billion.
Earlier this week, Northvolt announced it was selling a business unit making heavy industry battery packs for an undisclosed sum, with truck manufacturer Scania confirming it was the buyer.
