Northvolt's financial situation deteriorates and faces huge funding pressure

According to foreign media reports, Volvo Cars has notified European lithium battery giant Northvolt that it will exercise its repurchase rights to acquire Northvolt's shares in Novo Energy, and has now initiated the acquisition process. Northvolt's financial situation continues to deteriorate, with losses in fiscal 2023 widening from $284 million to $1.167 billion, and a balance of only $2.1 billion in cash and cash equivalents, down $400 million from 2022. In order to cut costs, Northvolt has begun layoffs and closing factories. In addition, its subsidiary Northvolt Ett Expansion AB has filed for bankruptcy, and its $2 billion battery procurement contract with BMW has also been canceled.