Volta Trucks Faces Bankruptcy-In a setback for the electric vehicle (EV) industry, Swedish startup Volta Trucks has filed for bankruptcy, citing difficulties in securing a stable battery supply. Despite its aspirations to revolutionize the transportation sector, the company’s production faltered, and efforts to raise additional capital proved unsuccessful.
The vulnerability of the supply chain is a critical factor for hardware companies, as seen in the case of Volta Trucks. Just as staff shortages caused substantial delays in aircraft deliveries from original equipment manufacturers (OEMs), the geopolitical uncertainties surrounding the semiconductor value chain have prompted significant investments to ensure stability in the US and EU.
Volta Trucks’ troubles intensified when EV battery developer Proterra filed for Chapter 11 bankruptcy protection in the US in August. This unfortunate event had a domino effect on Volta Trucks, hampering production and impeding the company’s ability to meet its targets. The board stated, “This negatively affected our ability to raise sufficient capital in an already challenging capital-raising environment for electric-vehicle players.”
Founded in 2019 by entrepreneur Carl-Magnus Norden and co-founder Kjell Waloen, Volta Trucks had raised approximately €600 million in November of the previous year. Production of its 16-tonne electric truck commenced in April, with plans for an IPO in 2024.
The flagship vehicle, the Volta Zero, boasted a 150-200km range and a 7-tonne payload capacity, available in both regular and refrigerated editions. With around 5,000 pre-orders, the company employed 850 people, the majority stationed across its UK sites.
Volta Trucks is part of a growing landscape of Swedish heavy transport EV startups. While autonomous electric freight vehicle producer Einride, based in Stockholm, has successfully deployed its trucks in Europe and the US, Volta Trucks’ challenges highlight the competitive and unpredictable nature of the EV market.
Established manufacturers like Scania are also adapting to the sustainability trend, exploring innovations such as covering lorries with solar panels and collaborating with battery startup Northvolt for the development of long-range zero-emission trucks.
The bankruptcy of Volta Trucks serves as a cautionary tale in the rapidly evolving EV industry, emphasizing the importance of a resilient supply chain and the ability to navigate challenging financial landscapes.
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