Swedish Battery Pioneer Northvolt Declares Bankruptcy

The collapse of Northvolt highlights challenges in Europe's electric vehicle industry, including fierce competition and overestimated demand.

Northvolt, a Swedish battery manufacturer once seen as a cornerstone of Europe's EV ambitions, has filed for bankruptcy after failing to secure necessary financial backing.
The company struggled with rising capital costs, supply chain disruptions, and a weaker-than-expected demand for electric vehicles, despite efforts to restructure under U.S. Chapter 11 bankruptcy protections.
Northvolt's failure underscores Europe's dependence on Asian battery producers, as the region currently accounts for only 3% of global battery cell production.
The company's collapse has impacted nearly 5,000 employees, following earlier layoffs of 1,600 workers in September 2024.
Major stakeholders, including Volkswagen and Goldman Sachs, were unable to facilitate a recovery, raising concerns about the viability of Europe's battery gigafactory projects.