Swedish electric vehicle battery giant Northvolt has reached crunch time to secure financial support from existing backers to keep the business in good stead.
As reported by Bloomberg, creditors of the manufacturer, which has been forced to shed a fifth of its workforce amid a steep downturn in European EV demand, are meeting today to discuss refinancing options.
Lenders could potentially give Northvolt access to a $5 billion green financing facility.
Northvolt’s fortunes have severely reversed just a year after news of a potential $20 billion initial public offering emerged.
“While overall momentum for electrification remains strong, we need to make sure that we take the right actions at the right time in response to headwinds in the automotive market, and wider industrial climate,” Northvolt co-founder and chief executive Peter Carlsson said earlier this month when announcing the layoffs.
Northvolt’s major backers include private equity titan and Swedish carmaker Volkwagen.