Swedish electric truck start-up Volta Trucks says it has been forced to file for bankruptcy following significant battery supply challenges that have made it impossible for the company to move forward.
Volta Trucks, which only began series production of its all-electric Volta Zero 16 tonne truck earlier this year, will file for bankruptcy in Sweden and appoint insolvency practitioners from Alvarez & Marsal as administrators of its UK operations, including the company’s manufacturing and research facilities.
A statement from the company’s board on Tuesday explained that recent supplier challenges were behind decision, including the news that its battery supplier Proterra had itself been forced to file for Chapter 11 Bankruptcy in August.
Proterra’s bankruptcy filing put a significant strain on Volta’s manufacturing plans, reducing the volume of vehicles they had forecast to produce.
The subsequent uncertainty surrounding Volta’s battery supply also made it difficult to raise sufficient capital in what the board described as “an already challenging capital-raising environment for electric vehicle players.”
“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,” the board said in its statement.
“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.”
Volta Trucks had created the world’s first purpose-built 16-tonne all-electric truck which included a unique cab and chassis design. Already piloting in five countries in Europe and receiving positive feedback, Volta had built up a strong pipeline of “highly reputable customers” who were looking to buy the Volta Zero.
The news of Volta’s failure comes as electric mobility companies around the globe struggle with a combination of supply chain constraints and fluctuating demand. These struggles have in turn led to funding issues, with many electric mobility start-ups running out of cash.
Around 60 jobs in the UK alone are now likely be lost unless a miracle investor appears to salvage the company and its future.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.