A Northvolt building in Sweden, photographed in February 2022.
Mikael Sjoberg | Bloomberg | Getty Images
Struggling electric vehicle battery manufacturer Northvolt on Wednesday said it has filed for bankruptcy in Sweden.
The firm said it that it submitted the insolvency filing after an “exhaustive effort to explore all available means to secure a viable financial and operational future for the company.”
“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,” Northvolt noted.
“Further to this backdrop, the company has faced significant internal challenges in its ramp-up of production, both in ways that were expected by engagement in what is a highly complex industry, and others which were unforeseen.”
Northvolt’s collapse into insolvency deals a major blow to Europe’s ambition to become self-sufficient and build out its own EV battery supply chain to catch up to China, which leads as the world’s largest market for electric vehicles by a wide margin.
The Swedish battery firm had been seeking financial support to continue its operations amid an ongoing Chapter 11 restructuring process in the United States, which it kicked off in November.
“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,” Northvolt said Wednesday.
Northvolt said a Swedish court-appointed trustee will oversee the company’s bankruptcy process, including the sale of the business and its assets and settlement of outstanding obligations.
