Work accident in Sweden | In liquidity crisis, Northvolt is the subject of an investigation for involuntary manslaughter

A defining moment awaits Northvolt as its creditors prepare to decide whether to release funds deemed essential to its survival. But other concerns await the young company, which is suspected of involuntary manslaughter after a fatal work accident that occurred last fall in Sweden.

According to the Financial TimesSwedish prosecutors are expected to serve a notice of investigation to the battery cell manufacturer in the coming weeks regarding suspicion of serious manslaughter.

From its headquarters in Stockholm, Sweden, Northvolt says it is “fully cooperating with the investigation,” which has been underway for several months now.

“As this is continuing, Northvolt will not make any further comments,” she limited herself to saying.

The accident in question, which occurred last November, cost the life of a 25-year-old worker, who died a month later. He was seriously burned following an explosion inside the Skelleftea mega-factory in northern Sweden.

Summit meeting

This new tile comes at a time when the Swedish multinational’s creditors must decide to what extent they continue to help Northvolt, already considered the most financed young European company in Europe with a harvest of 15 billion US dollars.

According to the Bloomberg agency, this meeting is to be held on Friday.

At the heart of a liquidity crisis, Northvolt retained the services of the firm Teneo to help it plan for recovery scenarios. It is still unclear what this will mean for its 7 billion battery cell mega-factory – the last step before battery assembly – planned for Montérégie.

There appears to be hope for the company. One of its main shareholders, Harald Mix, who reportedly holds a stake of around 7% in the company, told Swedish media that he had no intention of abandoning ship.

“Most stakeholders see the important role that a company like Northvolt plays for European competitiveness and the transformation of the automotive industry,” he told Sveriges Radio. I will continue to support Northvolt with new capital. »

Questions in Quebec

In Quebec, the Legault government finds itself on the defensive since this key player in the battery industry is fighting for its survival. So far, 710 million in public funds – a sum which includes a loan from the Caisse de dépôt et placement du Québec – has been granted to Northvolt.

This difficult context also set the table for a meeting on Tuesday between the Minister of the Economy, Innovation and Energy, Christine Fréchette, and the head of Northvolt’s North American activities, Paolo Cerruti . After the meeting, M^me Fréchette said she had been reassured by the company and no longer feared its bankruptcy at all.

The Press has already reported that the start-up of the complex which is to be built on the land which straddles Saint-Basile-le-Grand and McMasterville will be delayed. Quebec anticipates delays which could reach 18 months.

This complex focuses on the production of cathodes (the positive pole of a lithium-ion battery), the manufacturing of battery cells as well as recycling. Northvolt assures that the manufacturing of battery cells in Quebec is still in the plans, without however guaranteeing the other aspects of its project.

In Sweden, the multinational has notably put on ice everything that revolves around the production of cathode as part of its refocusing. It also cut 1,600 jobs, or nearly a quarter of its global workforce.