Volta Trucks, a Swedish electric vehicle startup, has announced its plans to file for bankruptcy, threatening approximately 600 automotive jobs in the UK.
The company began producing its electric 16-tonne truck in April through a contract manufacturer in Austria. But it encountered setbacks after its battery supplier, Proterra, filed for Chapter 11 Bankruptcy in the US in August.
Volta Trucks’ downturn
This significantly reduced Volta’s production capacity and made it challenging to secure additional capital.
Consequently, the company made the “difficult” decision to initiate bankruptcy proceedings. The main trading entity, Volta Trucks Limited, is expected to file for administration in England, with insolvency practitioners from Alvarez & Marsal anticipated to oversee the process.
Most of Volta’s engineering and development work occurred in the UK, with 600 of its 850 employees stationed across sites near Reading, Nuneaton, and Gaydon.
EV startups
It’s no secret that EV development is ramping up worldwide. Many car manufacturers have vowed to become completely sustainable in the next few years.
Naturally, Volta Trucks emerged among numerous EV startups in the past decade.
However, many of these startups have struggled to produce vehicles, with several running out of funds. This as a result of global market uncertainty, growing investor skepticism about the long-term viability of new EV players, and high costs.
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Proterra, Volta’s battery supplier, filed for bankruptcy early in October. This had a substantial impact on the company’s manufacturing plans, reducing the forecasted volume of vehicles. It adversely affected Volta’s ability to raise sufficient capital, especially in the challenging fundraising environment for electric vehicle companies.
“The recent news that our battery supplier (Proterra) has filed for Chapter 11 Bankruptcy has had a significant impact on our manufacturing plans, reducing the volume of vehicles that we had forecast to produce. The uncertainty with our battery supplier also negatively affected our ability to raise sufficient capital in an already challenging capital-raising environment for electric vehicle players,” the company says in a statement.
An unexpected failure
Despite facing challenges, Volta Trucks managed to amass approximately 5,000 vehicle pre-orders and had begun delivering finished trucks to customers across Europe.
The company had also raised €300 million from investors, including Swedish group Byggmästaren Anders J Ahlström.
“The board has not taken this course easily or lightly and is fully aware of the significant impact this will have on the organization’s dedicated workforce, as well as customers and partners. We would like to sincerely thank the Volta Trucks team and are incredibly proud of their pioneering work to deliver such an innovative zero-emission commercial vehicle,” it says in the statement.
This announcement has cast a shadow over the company’s ambitious plans to scale up manufacturing and expand its presence in the market.
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Marce has contributed tech to various prominent publications since 2018, offering a transparent perspective into the tech industry and its effects on its users. She now spends her time developing insightful content for industry players. You know, when she's not gaming or geeking out about the latest fad.
