Battery-maker Northvolt has filed for bankruptcy in Sweden, bringing its long-running financial drama to a head.
Once considered among Europe’s most promising startups, Northvolt has battled to stay afloat.
Despite filing for Chapter 11 bankruptcy in the US and receiving liquidity support from lenders and key stakeholders, the company has been unable to secure the necessary financial support needed to continue in its current form.
The board determined bankruptcy to be the only viable solution while pursuing all realistic options to secure funding and maintain operations, according to a statement from Northvolt.
“This is an incredibly difficult day for everyone at Northvolt. We set out to build something groundbreaking — to drive real change in the battery, electric vehicle, and broader European industries and accelerate the transition to a green and sustainable future,” Tom Johnstone, interim chair of Northvolt, said in the statement.
Read more: The rise and fall of Northvolt
Like many companies in the battery sector, Northvolt has faced major challenges that have weakened its financial position.
Rising capital costs, geopolitical instability, supply chain disruptions, and shifts in market demand have all taken a toll.
A Swedish court-appointed bankruptcy administrator will oversee the sale of Northvolt’s business and assets, as well as the settlement of obligations, ensuring a transition for employees, shareholders, and creditors.
Northvolt AB and several Swedish subsidiaries have filed for bankruptcy, but Northvolt Germany and Northvolt North America have not.
