Northvolt Declares Bankruptcy in Sweden, Casting Doubt on European Battery Goals

The insolvency of the Swedish battery maker raises concerns over the future of Europe's battery independence and the viability of its German factory project.

Northvolt has filed for bankruptcy in Sweden, citing financial challenges including rising costs, supply chain issues, and production setbacks.
The company's German subsidiary, responsible for a battery factory in Heide, is not part of the insolvency and plans to continue operations for now.
The bankruptcy threatens Europe's goal of reducing reliance on Asian battery manufacturers, a key component of its green energy transition.
The EU and German governments had committed significant financial support to Northvolt's Heide project, raising concerns about potential taxpayer losses.
Industry experts and officials remain hopeful that new investors could step in to salvage the Heide factory and parts of Northvolt's operations.