Swedish battery manufacturer Northvolt AB is currently in bankruptcy, with operations scaled back and a workforce reduced to 1,700 employees from 7,000.

Mikael Kubu, Northvolt’s bankruptcy trustee, said that limited operations are necessary to facilitate a potential sale of the business.

The company’s assets were recently put up for sale under court direction.

Founded in 2016, Northvolt raised around US$10 billion but faced operational challenges and rising liabilities, leading to significant losses for lenders and shareholders.

Kubu confirmed that an agreement has been made with stakeholders to secure financial guarantees for ongoing operations.