Sweden’s state-owned pension fund AP2, Gothenburg, has written down its entire stake in bankrupt battery maker Northvolt, according to the fund’s annual report.
AP2, which has been a shareholder of Northvolt since 2021, said the stake was worth 1.5 billion kronor ($137 million) at the beginning of 2024, corresponding to 17% of its investments in sustainable infrastructure.
Northvolt filed for Chapter 11 bankruptcy protection in the U..S in November after a bid to secure rescue funding fell short, leaving the company with little cash and $5.8 billion in debt. The battery maker has yet to line up investors willing to commit funds to allow it to emerge from the legal proceedings.
AP2 plowed money into Northvolt alongside three other state-owned AP pension funds via the jointly-held vehicle 4 to 1 Investments. Their combined investment totaled 5.8 billion kronor in shares and convertible debt — the equivalent of nearly 0.3% of the funds’ overall assets under management.
“4 to 1 Investments will continue to maintain a constructive dialog with the company to protect invested values and act in the best interests of the company in the long term,” the fund’s head of real assets Helena Olin said in the report.
The fund still “sees a need for a European ecosystem of companies for electrification and fossil-free transportation,” she said.
AP2 had 445.8 billion Swedish kroner ($42 billion) in assets as of June 30.
