• Operations to continue as usual during Chapter 11 reorganization process, with company meeting obligations to customers, vendors and employees

• Voluntary reorganization facilitates access to approximately $145 million in cash collateral and $100 million debtor-in-possession financing

• Process will help secure Northvolt's long-term mission to establish a homegrown, Western industrial base for battery production

STOCKHOLM, Nov. 21, 2024 /PRNewswire/ -- Northvolt AB and certain of its subsidiaries ("Northvolt") voluntarily filed for Chapter 11 reorganization in the United States. By enabling the company to restructure its debt, appropriately scale the business to current customer needs and secure a sustainable foundation for continued operation, these Chapter 11 filings will help Northvolt to implement the decisions made as part of its strategic review to rescope the business and prioritize commitments to customers.

Northvolt will continue to operate as usual during the reorganization, similar to other international companies that have used the Chapter 11 process to reorganize their financial obligations. The company will continue to make deliveries to customers, while fulfilling obligations to critical vendors and payment of wages to employees. The Chapter 11 restructuring process in the U.S. is distinct from a bankruptcy or administration proceeding in Sweden or many other countries.

Importantly, this process will allow Northvolt to access new sources of funding, including approximately $145 million in cash collateral. In addition, one of Northvolt's existing customers has committed to provide $100 million in new financing to support Northvolt's business operations in the form of debtor-in-possession (DIP) financing, which is a specialized type of financing for businesses that are restructuring through a Chapter 11 process.

Northvolt Ett, the company's flagship battery gigafactory in Skellefteå, Sweden, and Northvolt Labs in Västerås, Sweden will remain operational as Northvolt ramps up production to meet commitments to its customers. Northvolt Germany and Northvolt North America, subsidiaries of Northvolt AB with projects in Germany and Canada, are financed separately and will continue to operate as usual outside of the Chapter 11 process as key parts of Northvolt's strategic positioning.

Tom Johnstone, interim Chairman of the Board, commented: "This decisive step will allow Northvolt to continue its mission to establish a homegrown, European industrial base for battery production. Despite near-term challenges, this action to strengthen our capital structure will allow us to capture the continued market demand for vehicle electrification. We are likewise pleased by the strong support we have received from our existing lenders and our customers."