Comment from 4 to 1 Investments on Northvolt

The AP Fund-owned company 4 to 1 Investments has received the information that Northvolt has filed for reconstruction in the US, so-called Chapter 11. A restructuring of the company's capital structure is now starting in parallel with continued operation of the business. 4 to 1 Investments will continue to hold a constructive dialogue with the company to protect invested values and work for the company's best interests in the long term.

4 to1 Investments has been an investor in Northvolt since 2021. The last year has been challenging for Northvolt with a weakening market for electric vehicles and continued production challenges. This is now addressed through action plans and reduced expansion pace. In the transition to a lower dependence on fossil fuels and a Europe that wants to secure local production from European suppliers, 4 to 1 Investments views European battery manufacturing and Northvolt as a long-term investment.

“4 to 1 Investments was prepared to take responsibility as a long-term owner and support Northvolt with capital in the financing process that has been ongoing during the autumn, but notes that there was not support from a sufficiently broad group of the company's key stakeholders. A Chapter 11 process provides new conditions for further development of Northvolt. In the reconstruction process the company is now embarking on, we will continue the constructive dialogue we have with the company,” says Jenny Askfelt Ruud, Chairman of the Board of Directors of 4 to 1 Investments.

"Northvolt is now entering a new phase. 4 to 1 Investments' focus is now to protect invested values and, as part of this, take responsibility and work for the company's best interests in the long term. The way forward has not yet been mapped out, but we continue to have a close dialogue with the company and are following developments closely. Prior to the investment in Northvolt, a comprehensive evaluation was done and our overall assessment is still that there is a need for a European ecosystem of companies for electrification and fossil-free transport," concludes Jenny Askfelt Ruud.

4 to 1 Investments

4 to 1 Investments, a company jointly owned by AP1, AP2, AP3 and AP4, has invested a total of SEK 5.8 billion in shares and convertible debt in Northvolt. This corresponds to just under 0.3 percent of the four AP Funds' total assets under management of approximately SEK 2,000 billion at mid-2024.