Northvolt's Financing Efforts

By Marie Mannes

STOCKHOLM (Reuters) – Swedish battery maker Northvolt is making significant progress towards raising a new financing package, it told Reuters on Monday.

The group has been in talks with investors and lenders in recent weeks to secure short-term funding, three sources familiar with the matter told Reuters on Oct. 11, as the board sought to stabilize the company's finances.

It has already started collecting signatures for a financing package potentially larger than $300 million, which could be announced before the end of the month and provide enough funds for the battery maker until next year, a person with direct knowledge of the deal said.

The person was speaking on condition of anonymity because they were not authorized to speak publicly.

> "We have made significant progress towards securing a finance solution for Northvolt and we continue to have constructive dialogues with key stakeholders, including customers, suppliers, shareholders, and lenders," a spokesperson for Northvolt told Reuters.

> "We are now working intensely to conclude our financing dialogues in a timely manner."

Northvolt has in a matter of months gone from being Europe's best shot at a home-grown electric-vehicle battery champion to racing to stay afloat by slimming down and cutting jobs, hobbled by production problems, sluggish demand, and Chinese competition.