The Board of Directors of Morrow Batteries ASA has resolved to file for bankruptcy proceedings

The Board of Directors of Morrow Batteries ASA has today resolved to file for bankruptcy proceedings. Similar decisions have been made by the board in the subsidiaries Morrow Technologies AS and Morrow Industrialization Center AS.

The Board regrets that it was not possible to secure a limited additional timeframe to complete the ongoing process of securing a new industrial investor and financing the group. Several of the ongoing efforts had reached an advanced stage but could not be concluded within the constraints imposed by the group’s liquidity situation.

Since its establishment, Morrow has worked purposefully to establish industrial production of sustainable battery cells in Norway. The company has recently entered into a long-term master supply agreement with the Finnish company Proventia Oy and has additionally concluded its first commercial agreement within the defense industry, involving deliveries to a German company. However, Morrow's financial situation has further deteriorated over recent months

The background is complex. The company has been operating in an early and capital‑intensive industrialization phase, while at the same time the global battery market has become more competitive with oversupply and resulting price pressure. In addition, increased capital costs, delays in the industrialization process, and a more restrained investment market have made it significantly more difficult to secure financing.

The Board and management have worked intensely to find a solution that could ensure continued operations. Dialogue with existing owners, new industrial and financial investors, as well as public-sector stakeholders has involved potential equity injections, debt financing, and structural solutions.

Despite extensive efforts, it has not been possible to establish a long-term solution within the timeframe allowed by the liquidity accessible for the group. On this basis, the Boards have resolved to file for bankruptcy.

At the same time we firmly believe that the underlying technology and assets retain significant long-term value, and that the use of batteries across a growing range of applications will only continue to expand. We are confident that the estate, under the right conditions and with the right ownership, can be further developed into a viable and important contributor to modern industry.

Morrow is financed through:

• Equity contributions from shareholders including Å Energi, Siemens Financial Services, ABB, Maj Invest, Nysnø and Noah, totalling approximately NOK 3.3 billion.
• As additional shareholder-provided loan guarantees of over NOK 500 million.
• Innovation Norway has provided two loans in the total amount of NOK 550 million of which nearly NOK 300 million has been spent.
• Support from Europe and the Norwegian public funding system, primarily in the form of grants of NOK 202 million.
• Research collaborations have been funded by the Research Council of Norway, while Siva, as an industrial real estate investor, has invested NOK 542 million to build a specialised factory building which it is leasing to Morrow.

The Boards of Directors appreciate the extensive efforts undertaken, but the industrial investor and financing processes did not reach a successful conclusion within the available timeframe. The Boards wish to express their sincere gratitude to the company's dedicated employees, suppliers, collaboration partners, lenders, shareholders and all other stakeholders who have supported and believed in Morrow's mission.

The way forward

The Agder District Court is expected to appoint a bankruptcy administrator shortly for the Norwegian companies, who will assume control over the company’s assets and operations. The management in Morrow will fully assist the administrator in establishing oversight, preserving value, and facilitate any solutions that may contribute to the continuation of parts of the business.

The Board and management will cooperate closely with the bankruptcy administrator to facilitate the orderly conduct of the insolvency proceedings.

Employees will be safeguarded in accordance with the applicable Norwegian wages 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” says Jon Fold Von Bülow, Acting CEO of Morrow.

“Developments in the global battery market, combined with the capital requirements inherent in an early industrialization 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” says Ann Christin Andersen, Chair of the Board of Morrow Batteries ASA.