Swedish battery manufacturer Northvolt has filed for bankruptcy, citing financial pressures and operational hurdles that led to the decision. The company said it made an “exhaustive effort to explore all available means to secure a viable financial and operational future.”
“Like many companies in the battery sector, Northvolt has experienced a series of compounding challenges in recent months that eroded its financial position, including rising capital costs, geopolitical instability, subsequent supply chain disruptions, and shifts in market demand,” the company said in a statement on Wednesday.
Northvolt, a key player in Europe’s efforts to establish a domestic electric vehicle (EV) battery supply chain, had been seeking financial support while undergoing a Chapter 11 restructuring in the United States. The company noted that “despite liquidity support from our lenders and key counterparties, the company was unable to secure the necessary financial conditions to continue in its current form.”
A Swedish court-appointed trustee will now oversee the bankruptcy process, which includes selling the business and its assets, as well as managing outstanding obligations. Northvolt acknowledged that internal challenges in scaling up production contributed to its difficulties, stating that some obstacles were anticipated in “what is a highly complex industry” while others were unexpected.
The bankruptcy marks a setback for Europe’s ambitions to compete with China in EV battery production, as Northvolt had been regarded as a significant player in the sector.