Northvolt AB has filed for bankruptcy protection in the United States, but said the move will not jeopardize the manufacturer’s planned electric vehicle battery plant in Quebec.
The Sweden-based parent company and several subsidiaries on Thursday filed for a court-supervised reorganization of its debt and assets under Chapter 11 of the U.S. bankruptcy code.
However, Northvolt said its Canadian subsidiary is financed separately and “will continue to operate as usual outside of the Chapter 11 process.”
The Northvolt plant, dubbed Northvolt Six and slated for construction about 25 kilometres east of Montreal, is a $7-billion undertaking that aims to churn out battery cells and cathode active material for electric vehicles.
“Northvolt Six is an essential component of the company’s future and we remain fully committed to seeing it through,” said Paolo Cerruti, Northvolt co-founder and CEO of Northvolt North America, which oversees the project.
Story continues below advertisement
“The execution plan for the site construction …