Goldman Sachs Asset Management, the investment management arm of the US banking entity and the second-largest shareholder in the Swedish electric vehicle (EV) battery manufacturer Northvolt, is negotiating a liquidity injection into the company to prevent its extinction.
The firm is currently working to find a solution to the crisis facing the Scandinavian company.
So far, discussions with Northvolt’s management have been “constructive,” although both parties warn that the company’s future depends on the financial commitment of the other partners.
The company’s management is negotiating an extension of its liquidity line to keep operations afloat and aims to secure around 200 million euros to meet its immediate needs, of which 150 million euros is reportedly already assured through verbal agreements.
However, in the medium term, Northvolt aims to access a green loan—granted solely for the development of sustainable projects—of approximately 4.5 billion euros to reduce liabilities and strengthen the company’s chances of survival.
The firm’s debt exceeds 13.4 billion euros.
In recent weeks, the company has announced a wave of layoffs affecting nearly 1,600 workers across all divisions—one-fifth of its workforce—and plants in an effort to reduce costs, raise necessary capital, and increase battery production at the Ett factory (Sweden), near the Arctic Circle.
Which other firms are looking to “save” Northvolt?
Following Goldman Sachs AM’s positioning in favour of increasing financing for Northvolt, it is expected that the German vehicle manufacturer Volkswagen will be willing to help secure the firm’s future.
Scania CV AB, Volkswagen’s Swedish truck manufacturing unit, uses Northvolt batteries under its hoods, and what is currently being explored is whether financial assistance can be provided through this subsidiary by confirming advance orders for cells, according to Swedish media consulted by Europa Press.
Meanwhile, BMW ruled out injecting more money into Northvolt at the beginning of October.
As of today, the German company holds a 2.8% stake in the European cell supplier.