Potential financial loss risk for Northvolt assessed as minimal by PwC - Potential Loss Risk for Northvolt, as Assessed by PwC, Stands Below 1 Percent
In a shocking turn of events, European battery manufacturer Northvolt has filed for bankruptcy amid severe financial difficulties. The company, which had initially filed for Chapter 11 bankruptcy protection in the US in November 2024, due to debts of about $5.8 billion and having only around $30 million in liquidity, subsequently filed for bankruptcy in Sweden on March 12, 2025.
The insolvency of Northvolt has raised concerns, particularly in Schleswig-Holstein, where the state government is facing criticism for a planned battery factory project. The project, which was promoted by the Greens due to results from 20,000 simulations, was supported by subsidies totalling 600 million euros from both the federal and state governments. However, the fate of this factory, which was still in preparation, remains uncertain, with potential risks to 137 million euros from the state and 564 million euros from the federal government.
The key reasons behind Northvolt's insolvency include rising capital costs, geopolitical uncertainties, supply chain disruptions, and failure to secure sufficient financing despite restructuring efforts. Investigations have revealed that Northvolt sold very few finished accumulators and mostly relied on intermediate materials from other companies, contradicting its public claims of producing complete battery cells "100% in Sweden" on a single site. Workers anonymously reported parts of the production process were dysfunctional, contributing to operational challenges.
Following insolvency, Northvolt’s bankruptcy estate encompasses their main battery plant in Skellefteå, the research center in Västerås, and the planned battery factory in Heide, Schleswig-Holstein, Germany. Production at the Skellefteå plant has been halted temporarily.
PricewaterhouseCoopers (PwC) has been appointed as the insolvency administrators managing Northvolt’s bankruptcy proceedings. They have been actively seeking buyers for the bankrupt company’s assets and operations. As of June 2025, PwC officials confirmed receiving a non-binding indicative purchase offer from a foreign investor interested in acquiring the whole bankrupt estate, including the factory in Sweden, the R&D facilities, and the Schleswig-Holstein site. Two other potential buyers remain in discussions. PwC emphasized time constraints due to the dwindling number of employees and the urgent need to finalize negotiations.
The insolvency of Northvolt has severely affected Europe's ambitions in battery manufacturing. However, ongoing sale discussions under PwC’s management may allow continuation on a smaller scale or new ownership to preserve parts of the business. The situation in Schleswig-Holstein, with potential concerns about taxpayer funds, is under scrutiny, and the focus is now on securing these funds.
[1] "Northvolt files for bankruptcy in Sweden." Reuters, 12 Mar. 2025, [2] "Northvolt files for Chapter 11 bankruptcy." CNBC, 21 Nov. 2024,
- The current predicament of Northvolt's insolvency has instigated discussions around the community policy and employment policy in Schleswig-Holstein, as the state government faces criticism for a planned battery factory project that received subsidies from both the federal and state governments.
- The financial difficulties and subsequent bankruptcy of Northvolt have implications not only for the business sector but also for the political and general-news landscape, as Europe's ambitions in battery manufacturing are affected, and the fate of taxpayer funds is placed under scrutiny.
