Battery firm Litarion to enter insolvency proceedings
German Litarion started “a voluntary structured insolvency process that is expected to result in the appointment of a provisional receiver/liquidator of Litarion and its property by the German court”, according to its Canadian parent company Electrovaya.
The Li-Tec Battery GmbH, owner of the premises used by Litarion, will host the company just until 31th of January. The insolvency shall be due to problems with outstanding payments and seizures shall have exacerbated Litarion’s financial situation. Electrovaya says in its statement that “Litarion’s cash flow was materially negatively impacted by the demands and garnishment processes initiated against it by the landlord.”
However, the insolvency process shall not impact Electrovaya’s ability to fulfil current and future customer orders. Among Electrovaya’s customers is Walmart Canada, which placed a 4.3m order last September for drop-in li-ion battery systems to power forklifts at a distribution centre.
Litarion is a wholly-owned German subsidiary of Electrovaya, situated in the German city of Kamenz. It is a producer of cells, electrodes and ceramic separators and recently joined a consortium to set up cell production in Germany.