The investment company 4 to 1 Investments, which is jointly owned by Sweden’s AP1, AP2, AP3 and AP4, has written off SEK 5.8bn in assets it had invested in troubled battery manufacturer Northvolt, which has now filed for bankruptcy in Sweden.

Northvolt announced it had filed for bankruptcy yesterday, 12 March, following “exhaustive effort to explore all available means to secure a viable financial and operational future for the company”.

In November, Northvolt filed for Chapter 11 reorganisation under US law to restructure the company's capital structure while continuing to operate the business.

4 to 1 Investments has been invested in the company since 2021, with a total of SEK 5.8bn in shares and convertible bonds in Northvolt, which corresponded to just under 0.3 per cent of the four AP funds' total assets under management of just over SEK 2,000bn at the end of 2024.

However, the underlying investment in Northvolt was written down to zero at the end of the year when Northvolt’s financial difficulties were first revealed as it was “very difficult to assess any remaining value”.

Commenting, 4 to 1 Investments chair of the board, Jenny Askfelt Ruud, said: “The AP fund-owned company 4 to 1 Investments has received the information that Northvolt has filed for bankruptcy in Sweden. The company's management has worked intensively to restructure the business and secure long-term financing. 4 to 1 Investments regrets that a solution has not been reached.”

She continued: “The company has made significant progress in scaling up production and has strong support from strategic customers. It is, therefore, regrettable that the company has unfortunately not been able to secure sufficient capital to create stability over time and that the company's board today has been forced to file for bankruptcy in Sweden.

"It has been a challenging period for the company, and we had obviously hoped for a different development. In the longer term, this is a loss for Swedish industry, the national economy and, in particular, for Skellefteå, Northvolt and its employees. We regret the situation that has now arisen.”

Sweden’s AP funds are part of a group of European pension investors that were invested in Northvolt, which also stand to lose capital. Others include Denmark’s largest pension provider ATP, Sweden’s AMF and Folksam Group and the Netherlands’ ABP.

In a statement, Northvolt said that the court-appointed trustee will determine the future of its businesses and their assets, including technology and production facilities.

“Further updates will be provided by the trustee as the process progresses. For any inquiries regarding the process, stakeholders are encouraged to contact the trustee’s office once appointed,” the statement read.

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