Norwegian lithium nickel manganese oxide (LMNO) battery company Morrow has today announced that it has resolved to file for bankruptcy proceedings. The board has also resolved that its subsidiary companies Morrow Technologies AS and Morrow Industrialization Center AS will also be subject to the bankruptcy proceedings.
The company had failed to secure fresh industrial investment and financing within the timeframe imposed by its worsening liquidity position, bringing a sharp setback to ambitions to establish large-scale sustainable battery cell production in Norway.
The Board said several ongoing discussions with potential investors and partners had reached an advanced stage, but could not be concluded quickly enough to stabilise the business.
Directors formally resolved to file for bankruptcy after efforts involving existing shareholders, new industrial investors, lenders and public-sector stakeholders failed to deliver a long-term solution.
Morrow said the company’s financial position had deteriorated significantly in recent months amid increasingly difficult market conditions for European battery manufacturers. The company pointed to intense competition in the global battery market, oversupply and falling prices, alongside rising capital costs, delays to industrialisation and a more cautious investment climate.
A domestic battery industry for Norway
Founded to establish a domestic Norwegian battery industry, Morrow had recently secured a long-term master supply agreement with Finnish emissions control specialist Proventia Oy and had also signed its first commercial contract in the defence sector involving deliveries to a German customer.
The Board said it still believed Morrow’s underlying technology and industrial assets retained “significant long-term value”, adding that batteries would continue to see growing adoption across multiple applications. Directors said they believed the company’s assets could still form the basis of a viable industrial business under new ownership and suitable financial conditions.
Morrow had attracted substantial public and private backing since launch. Shareholders including Å Energi, Siemens Financial Services, ABB, Maj Invest, Nysnø and Noah contributed approximately NOK3.3 billion (€280 million) in equity, alongside more than NOK500 million in shareholder-backed loan guarantees.
Innovation Norway provided two loans totalling NOK550 million, of which nearly NOK300 million had been drawn down. European and Norwegian public funding schemes also contributed grants worth NOK202 million.
In addition, Norwegian state-owned industrial property company Siva invested NOK542 million in a specialised battery factory building that it leased to Morrow. Research collaborations involving the company were also supported through the Research Council of Norway.
The Agder District Court is expected to appoint a bankruptcy administrator to take control of the Norwegian companies’ assets and operations. Morrow’s management said it would assist the administrator in preserving value and exploring opportunities for parts of the business to continue operating.
Employees will be protected under Norway’s state wage guarantee scheme administered by NAV, the Norwegian Labour and Welfare Administration.
“What has been achieved at Morrow is the result of extraordinary dedication, resilience, and belief through a period of significant challenges. While this chapter comes to an end, the knowledge, technology, and capabilities developed here represent lasting value. I want to express my profound respect and gratitude to all employees who have been part of this journey. Their efforts have laid a foundation that extends far beyond this moment” said Jon Fold Von Bülow, co-founder and acting CEO of Morrow.
“Developments in the global battery market, combined with the capital requirements inherent in an early industrialisation phase, have made this journey far more challenging than anticipated. We have worked intensively to find a sustainable solution but have not succeeded in securing sufficient financing within the timeframe available. At the same time, we are proud of what our employees have achieved – they have built a factory and developed technology that will hopefully prove valuable to Europe’s growing battery sector,” said Ann Christin Andersen, chair of the board of Morrow Batteries ASA.
