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Northvolt Files for Bankruptcy Amid Mounting Debt, Aims to Restructure Operations

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Swedish battery manufacturer Northvolt AB, a key player in Europe’s electric vehicle (EV) industry, has filed for Chapter 11 bankruptcy in the United States. The move follows the company’s inability to secure rescue funding, leaving it with only $30 million in cash reserves against debts totaling $5.84 billion.

Northvolt, which specializes in lithium-ion, lithium-metal, and sodium-ion batteries for EVs and energy storage, operates its flagship gigafactory, Northvolt Ett, in Skellefteå, Sweden. The bankruptcy filing marks a significant setback for Europe’s domestic battery production ambitions, as Northvolt was seen as a cornerstone of the continent’s EV supply chain.

Access to Funds and Operational Continuity

Filing for Chapter 11 bankruptcy enables Northvolt to access $245 million in new financing as part of a voluntary reorganization. This includes $100 million in debtor-in-possession financing—a specialized funding mechanism for businesses restructuring under bankruptcy—and $145 million in cash collateral provided by a client.

These funds are expected to stabilize the company’s financial situation, allowing Northvolt to scale its operations to meet market demands and establish a stronger foundation for long-term growth.

Despite the filing, Northvolt announced it would maintain normal operations across its facilities, including Northvolt Ett and Northvolt Labs in Västerås, Sweden. Its subsidiaries in North America and Germany will also continue to function without interruption. Employee wages, vendor obligations, and customer deliveries will proceed as usual during the reorganization.

Leadership Changes and Strategic Vision

As part of the restructuring, CEO Peter Carlsson announced his resignation. Interim Board Chairman Tom Johnstone emphasized the importance of the bankruptcy filing as a step toward securing Northvolt’s future.

“This decisive step will allow Northvolt to continue its mission to establish a homegrown, European industrial base for battery production,” Johnstone said in a statement. “Despite near-term challenges, this action will strengthen our capital structure, enabling us to capture the growing demand for vehicle electrification.”

Johnstone also reassured stakeholders, including employees, customers, suppliers, and governments, of Northvolt’s commitment to fulfilling its obligations.

Outlook

The reorganization aims to position Northvolt as a more resilient and competitive entity capable of driving innovation and sustainability in the EV market. While the bankruptcy filing underscores the financial strain on Europe’s battery industry, Northvolt’s efforts to rebuild its capital structure may help it regain its footing in the rapidly growing EV sector.

The company’s long-term goal remains the establishment of a robust European battery production base to support the continent’s transition to sustainable mobility.

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US Designates Tren de Aragua, MS-13, and Six Drug Cartels as Foreign Terrorist Organizations

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The United States has officially designated two gangs and six Mexican drug cartels as foreign terrorist organizations, marking a significant step in its fight against transnational crime. The announcement, made Thursday by U.S. Secretary of State Marco Rubio, fulfills a long-standing goal from former President Donald Trump’s first term.

The designated groups include Venezuela’s Tren de Aragua, El Salvador’s MS-13, and Mexican cartels such as the Sinaloa Cartel, Jalisco New Generation Cartel (CJNG), Cárteles Unidos, Cartel del Noreste, Cartel del Golfo, and La Nueva Familia Michoacana. These organizations now join groups like ISIS, Boko Haram, and Hamas on the U.S. list of foreign terrorist organizations.

Tren de Aragua, which originated as a prison gang in Venezuela, is known for human smuggling and targeting migrants. The group has expanded its presence across Latin America and became a focal point during Trump’s presidential campaign after an alleged gang-related kidnapping in Aurora, Colorado.

MS-13, or Mara Salvatrucha, has deep roots in both El Salvador and the United States. Founded by Salvadoran immigrants in Los Angeles during the 1980s, the gang is notorious for its violence. While its power has waned in El Salvador due to President Nayib Bukele’s crackdown, its influence remains a concern in the U.S.

Among the Mexican cartels named, the Sinaloa Cartel is particularly infamous, previously led by Joaquín “El Chapo” Guzmán. The group is heavily involved in fentanyl trafficking, which U.S. officials say has fueled the opioid crisis. CJNG, led by former police officer Nemesio Oseguera Cervantes, uses a franchise model to dominate smuggling routes, importing chemical precursors from China.

Cárteles Unidos formed in 2019 to combat CJNG’s expansion in Michoacán, while Cartel del Noreste, a splinter of Los Zetas, operates near the U.S.-Mexico border and engages in migrant smuggling. Cartel del Golfo, responsible for the 2023 kidnapping of American tourists in Matamoros, dates back to the Prohibition era. La Nueva Familia Michoacana, led by the Hurtado Olascoaga brothers, is involved in drug trafficking and migrant smuggling.

The U.S. government’s designation aims to enhance efforts to dismantle these organizations, with Rubio stating that combating their influence is critical for national security and border control.

 

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Tel Aviv-Based Cybersecurity Firm Dream Secures $100 Million in Funding, Valuation Hits $1.1 Billion

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Israeli cybersecurity firm Dream has raised $100 million (€105 million) in a Series B funding round, bringing its valuation to $1.1 billion (€1.05 billion). The company, which specializes in AI-driven cyber defense solutions for governments, aims to detect and neutralize cyber threats before they materialize.

The funding round, announced on Monday, was led by Bain Capital Ventures, with additional backing from Group 11, Tru Arrow, Tau Capital, and Aleph. The fresh capital injection will accelerate the company’s expansion into new markets and enhance the development of its Cyber Language Model (CLM), a next-generation AI tool designed to counter evolving cyber threats.

Cybersecurity in an Age of Increasing Threats

Founded in January 2023, Dream has quickly established itself as a key player in the cybersecurity sector, particularly in government and national security contracts. In 2024 alone, the company generated more than $130 million (€124 million) in sales to governments and national cybersecurity organizations.

Sebastian Kurz, co-founder and President of Dream, emphasized the urgency of robust cyber defense strategies.

Sophisticated cyber-attacks on critical infrastructure are increasing in both prevalence and complexity,” Kurz said in a statement.

“During my time as Prime Minister, I saw firsthand how these attacks can cause real human damage and have the potential to disrupt entire societies. By founding Dream, we are on a mission to empower nations against what I believe is the defining national security threat of our era.”

Kurz, the former Austrian Chancellor, founded Dream alongside entrepreneur Shalev Hulio and cyber expert Gil Dolev. The venture marks a major shift in Kurz’s career, following his resignation from government in 2021 amid corruption allegations.

A New Chapter for Sebastian Kurz

Kurz stepped down as Austria’s Chancellor in 2021 after facing accusations of misusing public funds for favorable media coverage. In February 2024, he was found guilty of lying under oath to parliament and received an eight-month suspended sentence. Kurz has called the ruling “very unfair” and has since launched an appeal.

Despite his controversial political exit, Kurz has rebranded himself in the tech and cybersecurity industry, leveraging his experience in governance to address national security threats in the digital age.

The Growing Demand for AI-Driven Cyber Defense

With cybercriminals increasingly deploying AI-powered attacks, experts stress that AI-based defenses are essential to counter deepfake scams, phishing campaigns, and sophisticated cyber espionage.

According to industry data cited by the World Economic Forum (WEF), the total cost of cybercrime has skyrocketed from $3 trillion (€2.9 trillion) in 2015 to $6 trillion (€5.7 trillion) in 2021. Analysts predict this figure will soar to $15.6 trillion (€14.9 trillion) by 2029.

The cybersecurity market is expanding in response. A McKinsey report estimates that global spending on cybersecurity products and services reached approximately $200 billion (€191 billion) in 2024.

Dream’s latest funding round will also bring in new board members, including Enrique Salem of Bain Capital Ventures and Shlomo Yanai, a board member at Philip Morris. They will join existing board members Dovi Frances, Michael Eisenberg, and Dream’s founding team.

As the AI arms race in cyber warfare intensifies, Dream aims to position itself as a key player in protecting national security interests worldwide.

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UK Prime Minister Keir Starmer Signals Willingness to Send Peacekeeping Troops to Ukraine

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British Prime Minister Keir Starmer has for the first time publicly stated that he would be willing to send UK troops to Ukraine as part of a European peacekeeping force, should a deal be reached with Moscow requiring such an arrangement.

His remarks, made in an op-ed for The Daily Telegraph on Sunday, come just ahead of an emergency meeting of European leaders in Paris, where discussions are expected to focus on the shifting geopolitical landscape following recent statements by the Trump administration regarding US involvement in Ukraine.

UK’s Commitment to Ukraine’s Security

In his op-ed, Starmer acknowledged the risks of deploying British troops, saying it would mean “putting them in harm’s way.” However, he described the situation as an “existential” issue for Europe and a “once in a generation moment” that required decisive action.

He reiterated the UK’s long-term commitment to Ukraine, pledging to maintain £3 billion (€3.6bn) in annual military aid until 2030 and positioning Britain as a key leader in European defence and security efforts.

European Response to US Policy Shift

Starmer’s comments come in the wake of a series of statements by senior officials in the new Trump administration, which have raised concerns among European allies about Washington’s long-term commitment to Ukraine.

Last week, US President Donald Trump and Secretary of Defence Pete Hegseth suggested that America would scale back its defence commitments in Europe, while US Special Envoy on Ukraine and Russia Keith Kellogg stated that Europe would likely be excluded from upcoming peace talks between Russia and Ukraine.

These remarks have left European leaders scrambling to determine their role in shaping a potential peace deal, as the US and Russian delegations prepare for talks in Saudi Arabia this week.

Growing Support for European Peacekeeping Force

The idea of a European-led peacekeeping mission in Ukraine is not new. It was first suggested by French President Emmanuel Macron in early 2024, when he refused to rule out deploying French troops. Since then, the concept has gained traction, though details remain scarce on what such a force would look like, which nations would participate, and under what conditions troops would be deployed.

The composition and role of the force would largely depend on the terms of a potential peace agreement, the status of the frontline, and the presence of Ukrainian and Russian troops on the ground.

Calls for Increased Defence Spending in Europe

In his op-ed, Starmer echoed growing calls from US and EU officials urging European nations to increase defence spending and take on a greater role within NATO.

Currently, eight of NATO’s 30 European members have yet to meet the alliance’s target of spending 2% of GDP on defence. The UK currently allocates 2.3% of its GDP to defence, with plans to increase this to 2.5%, though Starmer’s Labour government has not yet provided a clear timeline for achieving this goal.

Paris Summit and European Unity

Monday’s emergency meeting in Paris will see Starmer join leaders from Germany, Italy, Poland, Spain, the Netherlands, and Denmark, along with European Commission President Ursula von der Leyen and NATO Secretary-General Mark Rutte.

The summit is expected to focus on coordinating Europe’s response to the evolving US stance, the potential formation of a European-led peacekeeping force, and broader discussions on strengthening European defence capabilities in light of shifting global alliances.

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