Swedish battery maker Northvolt is making significant progress towards raising a new financing package, it told Reuters on Monday.
The group has been in talks with investors and lenders in recent weeks to secure short-term funding, three sources familiar with the matter told Reuters on Oct. 11, as the board sought to stabilize the company’s finances.
It has already started collecting signatures for a financing package potentially larger than $300-million, that could be announced before the end of the month and give the battery maker enough funds until next year, a person with direct knowledge of the deal said.
The person was speaking on condition of anonymity because they were not authorized to speak publicly.
“We have made significant progress towards securing a finance solution for Northvolt and we continue to have constructive dialogs with key stakeholders, including customers, suppliers, shareholders, and lenders,” a spokesperson for Northvolt told Reuters.
“We are now working intensely to conclude our financing dialogs in a timely manner.”
Northvolt has in a matter of months gone from being Europe’s best shot at a home-grown electric-vehicle battery champion to racing to stay afloat by slimming down and cutting jobs, hobbled by production problems, sluggish demand and Chinese competition.