Volta Trucks, known for its development of a 16-tonne all-electric vehicle, has filed for bankruptcy in Sweden. They stated the collapse of their main battery supplier as the cause for this decision. Simultaneously, its UK division is applying for administration. The business intends to appoint insolvency experts Alvarez & Marsal to deal with this situation. 

Volta Trucks is headquartered in Stockholm, but has most of its business and engineering operations in the UK. Warwick, Coventry and Reading are some of its major bases. The business also launched its first ‘service hub’ in Tottenham (North London) in June. London’s Mayor, Sadiq Khan inaugurated the site that was due to service the firm’s electric HGVs. The news of this bankruptcy has placed more than 600 jobs at risk. The majority of Volta’s 850 staff were based in the UK, particularly in the Midlands.

The electric truck maker had raised around 300 million euros ($316 million) from investors. It also stated that it had an order book of more than 5,000 vehicles. Volta Trucks were working on the designs for Volta Zero – a truck focused on inner-city deliveries, boasting a range of up to 125 miles. But the bankruptcy of its battery supplier, Proterra, significantly disrupted its manufacturing plans. It not only reduced vehicle production, but also hindered fundraising efforts.

State of the EV industry

An increasing number of EV start-ups have emerged in the last few years. The consumers’ heightened interest in green technologies and abundant venture capital funding have all contributed to this rise. However, Volta Trucks is not the only EV manufacturer to file for insolvency recently. Long lasting economic uncertainty, rising interest rate and production delays have severely impacted the supply chain of many other similar businesses. 

Prominent brands like Lordstown Motors and WM Motors are struggling to stay afloat and raise capital. Arrival, a UK-based electric van manufacturer, is also working to secure additional funding to ensure its survival after staff reductions earlier this month. 

This bankruptcy underscores the volatility and competitiveness of the EV sector. At the same time, acquiring a distressed EV business like Volta Trucks can help investors access advanced technology, R&D capabilities, and a skilled workforce. This can be particularly valuable in an industry where innovation is critical. 

To get more insights about distressed businesses in evolving industries, stay tuned to Administration List.