Electric truck maker Volta Trucks has filed for bankruptcy proceedings in Sweden, blaming issues with supply chains for its demise.
Volta, which is headquartered in Sweden and has operations in the United Kingdom, said the bankruptcy in August of electric vehicle parts supplier Proterra and uncertainty over its battery supplier had cut the number of trucks it was able to produce and made it hard to raise sufficient capital.
The company, which employs approximately 850 workers, had previously set its sights on an initial public offering in 2024.
In a statement announcing the bankruptcy, Volta Trucks said it had accomplished a great deal from a “standing start” in 2019.
“We created the world’s first purpose-built 16-tonne all-electric truck, including a unique cab and chassis design, that would have contributed to decarbonising the environment and enhanced the health and safety and air quality of urban centres,” the statement said.
“Piloting in five countries in Europe, we received fantastic feedback, which led to a strong pipeline of highly reputed customers who wanted to introduce our Volta Zero Trucks into their fleets.
“However, like all scale-ups in the EV manufacturing sector, Volta Trucks has faced challenges along the way.
“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 main trading entity of the group, Volta Trucks Limited, will shortly file for administration in England. Other group entities will also shortly file for insolvency proceedings in the relevant jurisdictions.
“The board has not taken this course easily or lightly and is fully aware of the significant impact this will have on the organisation’s dedicated workforce, as well as customers and partners.”
Like Volta, other EV start-ups have struggled to find more funding recently.
Lordstown Motors, a US electric trucking company filed for bankruptcy protection in June while Chinese electric car maker WM Motor collapsed earlier this month.
At one point both companies had been valued at well north of US$1 billion.
Arrival, a US-listed but UK-based EV maker cut a quarter of its staff earlier this month and is looking for new funding.