Northvolt, the Swedish electric vehicle battery maker founded by two former Tesla executives, has filed for bankruptcy after failing to secure additional funding. The company’s board announced the move on Wednesday, citing growing capital costs and geopolitical instability as major challenges.
Founded in 2016 by Peter Carlsson and Paolo Cerruti, Northvolt aimed to become Europe’s main EV battery manufacturer and counter the dominance of Chinese rivals such as CATL and BYD. However, it struggled with escalating debts, operational efficiencies, and a reliance on Chinese equipment that hindered its production capabilities.
Despite support from lenders, Northvolt failed to achieve the financial conditions required to continue operating. A Swedish court-appointed trustee will now oversee the sale of the business and its assets. This bankruptcy has come as European automakers struggle with weak demand for EVs and rising competition from Chinese rivals.
Volkswagen, Europe’s largest automaker, is considering closing factories in Germany for the first time and cutting tens of thousands of jobs due to weak EV demand and excess capacity. Mercedes-Benz recently announced staff buyouts and half-salary reductions to improve earnings following a decline in sales in 2024. Ford is also planning to cut 4,000 jobs in Europe by 2027.
The collapse of Northvolt highlights the challenges faced by European EV battery manufacturers in the face of intense competition from Asian rivals.
Source: https://www.businessinsider.com/northvolt-files-bankruptcy-ev-battery-maker-sweden-goldman-blackrock-vw-2025-3