Volta Trucks declares bankruptcy

Commercial electric vehicle start-up Volta Trucks declared bankruptcy in its home country of Sweden, citing challenges with its supply chain as a factor.

“We created the world’s first purpose built 16-tonne all-electric truck, including a unique cab and chassis design, that would have contributed to decarbonizing the environment and enhanced the health and safety and air quality of urban centers,” said the company’s Board in a statement. “Piloting in five countries in Europe, we received fantastic feedback, which led to a strong pipeline of highly reputed customers who wanted to introduce our Volta Zero Trucks into their fleets.”

The main trading entity of the group, Volta Trucks Ltd., located in England, was also impacted, appointing Alvarez & Marsal Europe LLP as joint administrators.

Volta Trucks, builder of the Volta Zero commerical electric truck, has hit a rough patch in the road. (Photo: Volta Trucks)

The statement also said, “The recent news that our battery supplier (Proterra) has filed for Chapter 11 bankruptcy, has had a significant impact on our manufacturing plans, reducing the volume of vehicles that we had forecast to produce. The uncertainty with our battery supplier also negatively affected our ability to raise sufficient capital in an already challenging capital-raising environment for electric vehicle players.”

Volta Trucks selected Proterra as its battery supplier in 2021, saying at the time that the “significant contract completes Volta Trucks’s strategic sourcing of the electric powertrain.” The collaboration also marked an entry into the European truck market for Burlingame, Calif.-based Proterra.

In August, Proterra Inc voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware to strengthen its financial position through a recapitalization or going-concern sale.

“Proterra is at the forefront of the innovations that are driving commercial vehicle electrification. We know we’re building industry-leading products that our customers want and need,” said Gareth Joyce, Proterra CEO, in a statement at the time of the announcement. “The foundation we have built has set the stage for decarbonization across the commercial vehicle industry as a whole, and we recognize the great potential in all of our product offerings to enable this important transformation. This is why we are taking action to separate each product line through the Chapter 11 reorganization process to maximize their independent potential.

“While our best-in-class EV and battery technologies have set an industry standard, we have faced various market and macroeconomic headwinds, that have impacted our ability to efficiently scale all of our opportunities simultaneously. As commercial vehicles accelerate towards electrification, we look forward to sharpening our focus as a leading EV battery technology supplier for the benefit of our many stakeholders.”

Proterra introduced zero-emission, electric transit buses to the North American market in 2010, which have reportedly collected amassed more than 40 million real-world service miles. Its battery technology can be found in commercial vehicle applications as well as off-highway equipment in the construction and mining segments.

Volta Trucks allegedly had 5,000 orders on the books. In April, the company announced the start of production for its all-electric Volta Zero thanks to Steyr Automotive, a contract manufacturer in Steyr, Austria.