In the midst of a liquidity crisis, battery manufacturer Northvolt assures that it will be able to pay its $28 million in taxes in Sweden next Monday and that it has indeed paid its municipal taxes in Quebec.
“If your question is whether we will pay our taxes by the October 14 deadline, the answer is the same as for other companies, a simple ‘yes’,” Northvolt AB assured the Newspaper Friday.
Northvolt’s parent company confirms at the same time that it has also paid its municipal taxes in Quebec, where it is building a $7 billion mega-factory.
This comes after support on Friday from Ebba Busch, Sweden’s Deputy Prime Minister and Energy Minister, who said Northvolt’s survival is important, but that “the Swedish state does not have the intention to become a shareholder, nor to provide direct taxpayer support.
Sweden’s Energy Minister, Ebba Busch, is also Deputy Prime Minister.
Photo provided by the Swedish government
Risky according to the Fund
The Journal reported Thursday that the Caisse de dépôt et placement du Québec (CDPQ) considered its $200 million loan to Northvolt to be a high-risk investment.
Launched in 2015, Northvolt is a Swedish start-up that has raised more than $14 billion, mainly in venture capital, but the company is struggling to the point of having recently had to thank 1,600 workers in Sweden, or 1,000 in Skellefteå, 400 in Västerås and 200 in Stockholm.
Milestone not reached
Asked by The JournalNorthvolt indicated that the milestone which would allow it to have the other $300 million from Quebec for its factory here is still not reached.
Photo provided by NORTHVOLT
Furthermore, according to sources from Globe and MailNorthvolt is reportedly close to announcing $218 million in funding.
The truck manufacturer Scania, shareholder of Northvolt, would play a key role in these discussions, again according to the Toronto daily.
Last Wednesday, Quebecer Angéline Bilodeau took charge of operations at the European manufacturer’s ETT factory, which is struggling with serious financial difficulties.