Overview

• Northvolt, a Swedish battery manufacturer once seen as a cornerstone of Europe's EV ambitions, has filed for bankruptcy after failing to secure necessary financial backing.
• The company struggled with rising capital costs, supply chain disruptions, and a weaker-than-expected demand for electric vehicles, despite efforts to restructure under U.S. Chapter 11 bankruptcy protections.
• Northvolt's failure underscores Europe's dependence on Asian battery producers, as the region currently accounts for only 3% of global battery cell production.
• The company's collapse has impacted nearly 5,000 employees, following earlier layoffs of 1,600 workers in September 2024.
• Major stakeholders, including Volkswagen and Goldman Sachs, were unable to facilitate a recovery, raising concerns about the viability of Europe's battery gigafactory projects.