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Volkswagen Fully Wrote Down Its Northvolt Investment in 2024

Volkswagen fully wrote down its Northvolt investment in fiscal 2024. The reported €0.7 billion non-cash expense combined that impairment with loan receivables, while a separate 2025 accounting change led to a €0.1 billion loss.
From TheFinanceBase Team2 min to read
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Volkswagen Group says it fully wrote down the carrying amount of its Northvolt investment in fiscal 2024. The related impairment of the investment and loan receivables produced a combined €0.7 billion non-cash expense—not a €0.7 billion figure for the equity stake alone. A separate €0.1 billion non-cash loss followed in 2025 when Volkswagen stopped using equity-method accounting for the investment.

What did Volkswagen write down?

Volkswagen’s 2025 Annual Report says the carrying amount of its Northvolt equity investment had been written down in full during fiscal 2024. The report gives the combined expense for that impairment and Volkswagen’s loan receivables from Northvolt as €0.7 billion, recognized in other financial result.

That distinction matters: the report does not identify €0.7 billion as the value of the equity stake by itself, nor does it provide a separate amount for the investment and the loans. The investment’s carrying amount was fully impaired; the €0.7 billion is the combined non-cash expense.

How the 2024 and 2025 losses differ

Fiscal period Accounting event Reported amount and meaning
2024 Impairment of the Northvolt investment and loan receivables €0.7 billion combined non-cash expense in other financial result; Volkswagen says the investment carrying amount was fully written down.
2025, from March 31 End of equity-method accounting for the investment €0.1 billion non-cash loss, primarily from realizing and reclassifying foreign-currency translation effects previously recorded directly in equity.

Both figures are reported by Volkswagen in its 2025 Annual Report. The 2025 loss is a separate accounting event, not an additional valuation of the stake comparable to the 2024 impairment.

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Why was Northvolt in financial distress?

Northvolt AB and named Swedish subsidiaries filed for bankruptcy in Sweden on March 12, 2025, according to the company’s announcement. Northvolt attributed its financial difficulties to compounding pressures that included high capital costs, geopolitical instability, supply-chain disruption, changing demand, and internal challenges ramping up production. These are Northvolt’s stated reasons, not a separate finding by Volkswagen about its investment decision.

The filing followed a different legal process in November 2024, when Northvolt announced it had filed for Chapter 11 reorganization in the United States. At that time, the company said certain facilities and subsidiaries would continue operating during that U.S. process. That earlier proceeding should not be confused with the subsequent Swedish bankruptcy filing.

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In its March 2025 announcement, Northvolt said a court-appointed trustee would oversee the Swedish bankruptcy process and the sale of business and assets. That announcement describes what was expected at the time; it does not establish the eventual disposition of every subsidiary or asset.

What the timeline shows

  1. Fiscal 2024: Volkswagen fully impaired the carrying amount of its Northvolt investment. The investment and related loan-receivable write-downs together led to the €0.7 billion non-cash expense.
  2. November 2024: Northvolt filed for Chapter 11 reorganization in the United States, a process distinct from its later Swedish bankruptcy.
  3. March 12, 2025: Northvolt AB and named Swedish subsidiaries filed for bankruptcy in Sweden.
  4. March 31, 2025: Volkswagen ended equity-method accounting for the investment and recorded the separate €0.1 billion non-cash loss, primarily tied to currency-translation effects.

Volkswagen’s reports index lists its 2025 Annual Report as published on March 10, 2026; the index is available on the company’s Financial Reports page.

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What Northvolt said about Europe’s battery industry

Tom Johnstone, Northvolt’s interim board chairman, said in the bankruptcy announcement: “For me personally, it remains key for Europe to have a homegrown battery industry, but it is a marathon to build such an industry.” That was Johnstone’s view on the industry’s long-term ambition, not an explanation of Volkswagen’s accounting treatment.

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