Northvolt Declares Bankruptcy, Shaking Europe's EV Battery Industry

The Swedish battery maker's collapse ends its role as a key contender against dominant Asian manufacturers, leaving 5,000 jobs and major projects in jeopardy.

Northvolt filed for bankruptcy in Sweden after failing to secure critical funding, citing internal production challenges and external pressures like rising costs and market shifts.
The bankruptcy affects Northvolt's Swedish operations but excludes its subsidiaries in Germany and North America, whose futures will be determined by a court-appointed trustee.
The company's financial struggles included an $8 billion debt load and the loss of a $2 billion BMW contract in 2024, which severely impacted its cash flow and operations.
The collapse jeopardizes major projects, including a $7 billion battery factory in Quebec, Canada, and disrupts Europe's efforts to establish a competitive EV battery industry.
Stakeholders such as Volkswagen, Goldman Sachs, and Canadian pension funds face significant losses, with some investors already writing down their stakes to zero.