Swedish battery manufacturer Northvolt has reassured stakeholders that it will fulfill its tax obligations due on October 14, amidst ongoing concerns about the company’s financial stability. In a statement to Reuters, a company spokesperson confirmed, “On the question of whether we will pay our taxes when they fall due on the 14th of October, the answer is the same as for other companies and is a simple ‘yes.’”
The announcement comes as Northvolt grapples with significant challenges, including a recent workforce reduction and an overall downsizing strategy. These moves have raised alarms about the future of Europe’s leading contender in the electric vehicle battery market, particularly following German automaker BMW’s cancellation of a $2 billion order in June.
Despite having secured over $10 billion in funding and rapidly expanding its operations in recent years, Northvolt is now facing critical obstacles, including production issues and fierce competition from Chinese manufacturers. Speculation had been mounting regarding the company’s ability to meet its upcoming tax payment, which amounts to 287 million Swedish crowns (approximately $27.59 million), as reported by the Swedish Tax Authority.
In a bid to bolster its finances, Northvolt is exploring the sale of surplus battery materials. Furthermore, earlier reports indicated that a unit of the company had filed for bankruptcy, and there was a change in leadership at its battery cell factory in Northern Sweden just this week.
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