Northvolt Declares Bankruptcy, Ending Europe's Battery Industry Hope

The Swedish EV battery startup's financial collapse leaves Europe without a key competitor to dominant Asian manufacturers.

Northvolt, once seen as Europe's leading EV battery startup, has filed for bankruptcy in Sweden following months of financial struggles.
The company had previously sought Chapter 11 bankruptcy protection in the U.S. in November 2024, aiming to restructure and secure funding.
Northvolt's financial challenges were attributed to rising capital costs, supply chain disruptions, geopolitical instability, and internal production issues.
The startup had received over $10 billion in equity, debt, and public financing from major backers, including Volkswagen and Goldman Sachs, but required an additional $1-1.2 billion to remain operational.
A Swedish court-appointed trustee will now oversee the sale of Northvolt's assets and the settlement of its debts, leaving 5,000 employees facing an uncertain future.