Battery manufacturer Powin files for bankruptcy months after landing $200M loan

Powin, a prominent battery manufacturer based in Oregon, has officially filed for bankruptcy, revealing a staggering debt exceeding $300 million. The company's Chapter 11 filing allows it to continue operations as it seeks to restructure its financial obligations. Known for its production of grid-scale batteries utilizing lithium-iron-phosphate (LFP) cells from China, Powin has faced significant challenges in securing alternative domestic suppliers. According to Jeff Waters, the former CEO, the maturity of the supply chain in the U.S. has not reached a level that could support their needs, as he stated in an April interview with Bloomberg. The company recently undertook a major workforce reduction, laying off nearly 250 employees, leaving it with only 85 staff members—less than 20% of its workforce at the beginning of the year. In conjunction with the bankruptcy filing, leadership has shifted, with Brian Krane taking over as CEO from Waters. Powin was once a key player in the clean tech sector, having gone private in 2018 and securing $135 million in growth equity last year from notable investors like Energy Impact Partners, GIC, and Trilantic Energy Partners. They also managed to obtain a $200 million revolving credit facility from KKR. Despite being ranked third in the U.S. for installed capacity and fourth globally in grid-scale battery storage, the company has not disclosed specific reasons behind the rapid accumulation of debt. However, given its heavy dependence on Chinese LFP cells, it's possible that tariffs and trade issues have contributed to its financial decline.