The ailing Swedish battery cell manufacturer Northvolt is to continue as its owners wish.

At a meeting in Stockholm on Wednesday, the shareholders, including Volkswagen, BMW and Goldman Sachs, voted against liquidating the company and in favor of continuing the restructuring process under Chapter 11 of the US Bankruptcy Code. "This is a positive outcome that demonstrates the support of our shareholders," Northvolt said in a statement. "Northvolt is making progress in the restructuring process, ramping up production and implementing its transformation."

The Swedish company was once seen as a beacon of hope for the independent development of battery production for electric cars in Europe. However, after unexpected quality problems in the complex production process, Northvolt ran out of money, so the company sought protection under US bankruptcy law in November. Volkswagen, the largest shareholder, has already written off its investment.

Northvolt most recently employed around 6,600 people in seven countries. A new battery factory was to be built in Heide, Schleswig-Holstein, with the help of large government subsidies. However, its future is uncertain due to financial bottlenecks.

(Report by Marie Mannes, Anna Ringström and Alexander Hübner, edited by Ralf Banser. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)