Swedish EV Battery Maker Northvolt Declares Bankruptcy

Once a cornerstone of Europe's green ambitions, Northvolt's collapse highlights financial struggles and market challenges in the EV battery sector.

Northvolt, founded in 2016 by ex-Tesla executives, filed for bankruptcy in Sweden after failing to secure necessary financing, leaving 5,000 jobs in jeopardy.
The company's financial troubles stemmed from $8 billion in debt, production delays, and losing major contracts, including a $2 billion order from BMW in 2024.
Northvolt's bankruptcy impacts its Swedish operations but excludes its subsidiaries in Germany, North America, and Poland, whose future will be determined by a court-appointed trustee.
The collapse disrupts Europe's efforts to reduce reliance on Asian battery manufacturers and jeopardizes Northvolt's planned $7 billion Quebec gigafactory project.
Key investors, including Volkswagen and Goldman Sachs, face significant losses, while local communities like Skelleftea, Sweden, brace for economic fallout.