Hydrogen startup Electriq Global collapses under nearly $30M in debt, despite raising $25M
Employees turn to the court as the startup fails to pay salaries.
Israeli startup Electriq Global has accumulated liabilities of approximately NIS 105 million ($29.4M), including debts to shareholders. On Thursday, the Haifa District Court, at the company's request and that of its employees, issued an order to freeze proceedings. The court also appointed Attorney Alona Baumgarten as the company's trustee to oversee its rehabilitation.
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Founded in 2013, Electriq Global operates in the hydrogen sector and is developing a circular platform for the storage and release of hydrogen gas. This effort aligns with global initiatives to develop technologies that reduce greenhouse gas emissions and facilitate the transition to green energy.
According to the company's application, its first planned product line is backup generators powered by solid hydrogen. While Electriq Global previously employed about 30 workers, its workforce has now been reduced to six. The company also operated a development center in Tirat Carmel and laboratories spanning approximately 1,200 square meters.
Since its founding, Electriq Global has raised approximately $25 million in funding.
In its court filing, the company cited financial difficulties stemming from stalled negotiations with a Dutch investor, who froze an investment of €25 million due to the security situation in Israel and the ongoing war. The request for court protection and rehabilitation was supported by an affidavit from director Baruch Halpert.
The request for an order to initiate rehabilitation proceedings was submitted after 13 current and former employees, represented by Attorney Ofir Ronen, petitioned for a trustee to be appointed with the company's consent. They claimed that Electriq Global failed to pay salaries for January 2025 and could not fully cover February wages for both current and laid-off employees.
Electriq Global said in a statement: “Following the employees' request to appoint a trustee and initiate proceedings, the company is working to formulate the best possible arrangement for both employees and suppliers. There is significant interest in the company’s technology, and we hope shareholders will support its continued operation to maximize its potential. The company will work to establish a debt settlement plan and will submit an application to the court in the coming days.”
