Heavily backed Europen battery startup Northvolt said on Tuesday that one of its subsidiaries has filed for bankruptcy after the cash-strapped battery firm scrapped flagship factory expansion plans last month.
Northvolt Ett Expansion AB, which was due to manage the project at the company’s plant in Skelleftea, northern Sweden, filed for bankruptcy on Tuesday, a statement said.
“All contacts with Ett Expansion AB will from now on be managed by the bankruptcy trustee,” Northvolt added, with the subsidiary said to have no direct employees.
Northvolt had announced in September that the expansion plan would be axed, with 1,600 job cuts also being indicated at the time.
Plans to concentrate resources on accelerating the production of cells at the plant were reiterated on Tuesday “to deliver on commitments to automotive customers”.
Northvolt added Ett Expansion AB was one of its 20 entities, with the bankruptcy application not affecting any of the others.