Northvolt Subsidiary Files for Bankruptcy Amid Expansion Halt

The Swedish battery maker's financial struggles lead to the bankruptcy of Ett Expansion AB, affecting its gigafactory plans.

Northvolt's subsidiary, Ett Expansion AB, filed for bankruptcy after the cancellation of a major expansion project in Skellefteå, Sweden.
The subsidiary was responsible for tripling the capacity of Northvolt's gigafactory, a project that was halted due to financial difficulties.
Northvolt has faced significant challenges, including competition from China, weak demand for electric vehicles in Europe, and internal production issues.
Despite raising over $15 billion from investors like Volkswagen and Goldman Sachs, Northvolt continues to face financial instability.
The bankruptcy affects only one of Northvolt's more than 20 entities, with the company still committed to other projects, including a planned battery plant in Germany.