Northvolt in talks to promote worthwhile battery pack unit- Reuters

In a bid to stabilize its monetary scenario, Northvolt, a Swedish firm specializing in electrical battery expertise, is actively searching for to promote its worthwhile electrical battery pack enterprise, Northvolt Programs Industrial, by the tip of the yr, Reuters reported as we speak.

This division, recognized for producing battery packs for heavy business functions, is among the agency’s few worthwhile ventures. The corporate is presently in discussions with an undisclosed giant industrial firm concerning a possible sale, as revealed by an inner memo dated November 22.

Northvolt, which has positioned itself as Europe’s main contender within the electrical automobile (EV) battery market, has not too long ago filed for Chapter 11 safety in the USA on November 21, after unsuccessful makes an attempt to safe further funding from stakeholders. The corporate has recognized a necessity for as much as $1.2 billion in exterior long-term funding to take care of operations.

The enterprise unit in query, Northvolt Programs Industrial, operates primarily out of Poland, together with the Northvolt Dwa manufacturing facility. The unit’s batteries are integral to powering heavy equipment corresponding to drill rigs and forklifts, with firms like Epiroc and Konecranes (HE:KCRA) amongst its clientele.

Regardless of the profitability of this phase, Northvolt’s outgoing CEO acknowledged final month that the corporate must streamline its deal with battery cell manufacturing and transfer away from its preliminary mannequin of being an all-encompassing supplier for manufacturing and recycling EV batteries.

The inner announcement indicated that whereas the sale discussions have been ongoing for roughly two months, they’re nonetheless within the preliminary levels. Nevertheless, the corporate goals to finalize a deal throughout the coming weeks. If a purchaser isn’t secured, Northvolt faces the prospect of shutting down the enterprise, because it can’t afford to maintain it past the present yr.

Along with searching for a purchaser for the battery pack operation, Northvolt’s Chapter 11 submitting additionally included plans to wind down its power storage enterprise, which is a part of the identical Northvolt Programs unit. This division focuses on creating options for storing extra electrical energy for future use.

A spokesperson for Northvolt Poland expressed optimism about reaching a constructive decision, emphasizing the corporate’s present deal with reaching a good final result.

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