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Northvolt co-founder, Swedish funds may inject cash, broadcaster reports
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Northvolt co-founder, Swedish funds may inject cash, broadcaster reports
Oct 17, 2024 2:12 PM

COPENHAGEN, Oct 17 (Reuters) - A co-founder of

struggling Swedish battery maker Northvolt is willing to inject

100 million crowns ($9.50 million) in the group and may be

joined by pension funds AMF and AP, broadcaster SVT reported

late on Wednesday, citing unnamed sources.

Northvolt is in talks with investors and lenders to secure

short-term funding of some 200 million euros ($217 million),

three people familiar with the matter told Reuters last week as

the board and management seek to stabilise the group's finances.

Harald Mix, who co-founded the battery maker in 2016, could

inject 100 million crowns, SVT reported.

The Vargas investment group, which is chaired by Mix,

declined to comment.

Northvolt has gone in a matter of months from being Europe's

best shot at a home-grown electric-vehicle battery champion to

racing to raise funds.

Swedish private pension fund AMF and the state-owned AP

Funds, which have already invested in Northvolt, may also

contribute more money, provided that other shareholders and

lenders are also willing to contribute, the SVT report said.

An AMF spokesperson told Reuters the fund manager had not

yet made any decision on Northvolt funding.

A spokesperson for the AP group of funds told Reuters they

were monitoring developments closely and were involved in an

ongoing dialogue.

"Given the challenging situation the company is in, we don't

comment further and refer to Northvolt and their communication

for the time being," the AP spokesperson said.

Northvolt did not immediately respond to a request for

comment on Thursday.

The company has previously said it made significant progress

in recent weeks in its effort to raise cash.

The investment arm of Goldman Sachs Group ( GS ), Northvolt's

second biggest owner, also considers participating in efforts to

rescue the battery maker, Bloomberg News reported on Wednesday,

citing people familiar with the matter.

Goldman Sachs ( GS ) declined to comment when reached by Reuters.

($1 = 10.5237 Swedish crowns)

($1 = 0.9214 euros)

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