Swedish Northvolt files for bankruptcy, ending Europe's battery hopes

Swedish electric vehicle battery maker Northvolt has filed for bankruptcy in Sweden. The company announced the news on its website today. This marks the end of Europe's biggest hope of creating a company that could compete with major Asian players in the electric vehicle battery market.

„The company was unable to secure the financial conditions needed to continue in its current form,“ said the company, which has more than 5000 employees.

A Swedish trustee appointed by the court will oversee the entire process, including the sale of the business and its assets and the settlement of outstanding liabilities.

Last November, the company had already filed for bankruptcy protection in the US to secure funding that would allow it to address persistent problems with ramping up production at its main plant in northern Sweden.

Europe had hoped Northvolt would reduce local carmakers' dependence on Chinese competitors such as CATL and BYD. Since its founding in 2016, Northvolt has secured more than ten billion USD (229,1 billion CZK) in equity, debt and public funding. The company's largest owners are Volkswagen, with a 21 percent stake, and Goldman Sachs, with a 19 percent stake.