Northvolt AB, et al.
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Sustainability
Environmental Achievements
- Developed a recycling program (Revolt) to recover valuable materials from end-of-life batteries.
- Launched a joint venture (Hydrovolt) with Norsk Hydro ASA to establish a battery recycling facility.
Social Achievements
- Employs approximately 6,600 employees across seven countries.
- Partnered with Volvo to form the NOVO Energy joint venture.
Governance Achievements
- Appointed two independent and disinterested directors with experience in distressed situations.
Climate Goals & Targets
Medium-term Goals:
- Complete the construction and operation of Northvolt Drei and Northvolt Six gigafactories.
Short-term Goals:
- Secure additional debtor-in-possession financing and negotiate a comprehensive recapitalization transaction.
Environmental Challenges
- Acute liquidity crisis.
- Production shortfalls.
- High operational costs.
- Downturn in the electric vehicle industry.
- Oversupply and underutilization of capacity in the battery industry.
- Reliance on Chinese suppliers for critical materials and machinery.
- Delays at Northvolt Ett.
Mitigation Strategies
- Streamlined operations and narrowed focus to battery technology development and cell manufacturing.
- Secured a $154 million shareholder bridge facility.
- Engaged financial advisors and investment bankers to assess strategic options.
- Filed for Chapter 11 bankruptcy protection.
- Negotiated a $100 million DIP facility with Scania and access to cash collateral.
- Initiated a sale process for certain assets (Northvolt Dwa Industrial, Revolt Ett).
Supply Chain Management
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Lithium-ion battery cells
- Sodium-ion battery cells
- Lithium-metal cells
- Voltpack Core
- Voltpack Mobile System
- Voltrack