European electric vehicle battery producer Northvolt has filed for bankruptcy in Sweden, sparking concerns over its impact on the region’s transition to renewable energy sources. The company had previously received a $5 billion loan from the European Union to expand production, but it was not enough to overcome financial difficulties.
Founded in 2016 by a former Tesla executive, Northvolt had been struggling financially for months, cutting jobs and restructuring operations before seeking bankruptcy protection. Despite efforts to secure funding through a Chapter 11 restructuring process in the US, the company was unable to meet its financial obligations.
The bankruptcy filing comes as European carmakers rely heavily on South Korea’s LG Energy Solution and Samsung, as well as China’s CATL, for battery production. Northvolt had aimed to capture 25% of the European market by 2030 but ultimately failed to secure sufficient funding.
A court-appointed trustee will now oversee the sale of Northvolt’s business and assets in Sweden, while subsidiaries in Germany and North America remain unaffected by the bankruptcy proceedings.
Source: https://www.nytimes.com/2025/03/12/world/europe/northvolt-battery-bankruptcy.html