Battery Makers Northvolt Files For Bankruptcy
Swedish battery maker Northvolt has filed for bankruptcy, ending its ambitious attempt to challenge China’s dominance in the EV battery market. The company, which had secured over $10 billion in funding from investors like Volkswagen and Goldman Sachs, referenced rising costs, supply chain disruptions, and slower-than-expected EV demand as key factors in its collapse. “This was a decision we did not take lightly,” said Northvolt Chairman Tom Johnstone, emphasizing that all options had been exhausted.
Northvolt had been struggling for months, seeking financial support amid an ongoing Chapter 11 restructuring in the U.S. Despite efforts to secure liquidity, the company failed to meet its short-term financial needs. The bankruptcy puts 5,000 jobs at risk and raises concerns about Europe’s ability to develop a self-sufficient EV battery supply chain. A Swedish court-appointed trustee will now oversee the company’s liquidation and attempt to settle its outstanding debts.
The company’s failure is a significant blow to Europe’s green energy transition, with automakers like BMW and Porsche now scrambling for alternative battery suppliers. Some of Northvolt’s subsidiaries, including those in Germany and North America, have not filed for bankruptcy, leaving a possibility for investors to salvage parts of the business. However, with mounting debt and canceled contracts, the future of Northvolt remains uncertain.
