Under financial pressure and in the midst of a restructuring that could have effects as far away as Quebec, Northvolt is finally seeing one of its indicators pick up: the Swedish company is finally able to significantly accelerate its production of battery cells.
In information sent to customers and investors on Friday, the start-up indicated that it had been able to manufacture 60,000 cells – the last step in the chain before the assembly of lithium-ion batteries – at its factory located in northern Sweden.
Its production rate has tripled since the beginning of the year.
“Our teams are working day and night,” the company said. “Northvolt has never produced so many cells, we must now remain focused to increase our deliveries to our customers.”
This is rare good news for the company, as ramping up production is essential to its profitability. Since the beginning of the year, Northvolt has been facing delays and cancellations of orders, which has seriously affected its financial situation.
“Northvolt has recently implemented an acceleration program in its cell production,” she says.
After pulling the plug on a project in Sweden and refocusing its strategy on a single market segment earlier this month, the Swedish manufacturer has seen its lenders retain a New York investment bank, PJT Partners, to explore its options.
According to Bloomberg, “creditors are preparing for a whole series of scenarios,” but there is no question of bankruptcy, according to the New York agency.
The Swedish company’s main shareholders are Volkswagen (21%) and Goldman Sachs (19%). Northvolt has raised some US$15 billion since its founding in 2015. The Caisse de dépôt et placement du Québec (CDPQ) has lent it US$200 million.
Added to this are the anticipated delays of the $7 billion Quebec mega-factory planned by Northvolt in Montérégie – information revealed by La Presse on August 31. The Legault government expects a delay of up to 18 months.