Overview

• 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.