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The short-term funding comprises pre-orders from customers and loans provided by shareholders, customers, and lenders

Swedish battery manufacturer Northvolt is in talks with investors and lenders to secure 200 Million Euros  ($218 million) in funding.

The short-term funding comprises pre-orders from customers. It also includes loans provided by shareholders, customers, and lenders, the source said.

Northvolt Aims to Raise Capital for Long-Term

One of the sources reported that the company aims to raise a large amount of capital for the long term. The source refused to reveal the identity as the matter is confidential.

On October 11, Northvolt repeated a statement from September 24 which conveyed that it had made significant progress in raising funding in recent weeks.

On October 10, responding to the speculation of Northvolt to pay taxes, the company said that it would be able to pay its taxes 287 million Swedish crowns ($27.59 million). The tax was due on October 7.

According to the source, there has been a verbal agreement for 150 million euros in funding. The final deal has not been signed yet.

The Swedish media reported less sums of money than the 15 billion Swedish crowns ($1.44 billion). A few months back, Northvolt was looking for .5 billion crowns in funding.

Northvolt Announced Plans for Lay off

Moreover, in September, Northvolt announced its plans to lay off employees. This sparked fear that Europe’s homegrown electric vehicle battery manufacturer might be at risk due to production problems, sluggish demand, and competition from China.

According to Reuters, Northvolt is seeking to sell redundant battery materials to raise funds.

Northvolt is a Swedish battery developer and manufacturer, specializing in lithium-ion technology for electric vehicles.