Northvolt chairman: We pursued every opportunity

Northvolt's interim chairman Tom Johnstone told a press conference that the company explored every possible avenue to save the business. But despite extensive investor backing, Northvolt failed to secure the financing needed to keep the lights on.

Johnstone says the company will do its best to keep operations running during the bankruptcy process, but offered few details on what will happen to the company's nearly 5,000 employees.

"Clearly this is not an outcome we had hoped for. It is one that runs counter to prevailing industrial sentiments in Europe, sentiments which have been with Northvolt since it was founded and remains with us today," Johnstone says. "These sentiments include the drive for European battery sovereignty and aspirations to deliver sustainable solutions to support the energy transition."

Swedish insolvency practitioner Mikael Kubu has been nominated to steer the process forward.

Northvolt's subsidiaries in Germany and the United States are not directly included in the bankruptcy filing, but decisions about their future will be made by the bankruptcy administrator.

In recent months, Northvolt had made headway in improving its financial situation and slashing costs, but these efforts ultimately fell short.

Still, Johnstone says he hopes the staff will feel proud of their accomplishments.

"We have designed and delivered Europe's first homegrown lithium-ion battery cells, proving that the European battery industry was possible and fulfilling our customers' requirements with world-class products," Johnstone says.

When questioned about the impact on employees, he explained that the HR team is working alongside administrator Kubu and will follow standard Swedish procedures. Staff are being encouraged to continue working and producing cells for as long as possible.

Johnstone refused to speculate on potential buyers or how Swedish taxpayers might be affected by the bankruptcy. He confirmed that Scania's order remains in place, but the bankruptcy administrator will now take over discussions with the customer.

Northvolt's former CEO and founder Peter Carlsson was also at the press conference and expressed hope that the company's journey might help other impact-focused ventures.

"I still hope that the vision and the way we built it up, with fantastic employees and securing major customers, can inspire others," Carlsson says. "It was incredibly difficult and very emotional to make this decision. I hope we find solutions going forward. The most important thing for me at this stage is that what has been created continues to live on, but I don't want to comment on who hopefully takes over."

When asked about his personal profits from previous Northvolt share sales, Carlsson responded irritably.

"That was a very stupid question," Carlsson said.