news 
Battery manufacturer Northvolt nears the end as it files for bankruptcy in Sweden
Northvolt has filed for bankruptcy in Sweden, marking a significant blow to Europe’s attempts to create a battery manufacturing juggernaut that could rival Chinese giants. Despite raising over $14 billion, the Swedish startup has been struggling to conserve cash due to rising capital costs, geopolitical instability, subsequent supply chain disruptions, and shifts in market demand.
In an effort to stave off insolvency, Northvolt had previously filed for Chapter 11 bankruptcy in the U.S. in November and was racing to raise new funds to stay afloat. However, these efforts have ultimately fallen short.
The company’s fortunes took a turn for the worse after BMW canceled a $2 billion contract in June 2024. The battery manufacturer had been unable to deliver on time, forcing it to lay off 1,600 employees and sell the assets of its Cuberg division, a Bay Area solid-state battery startup it acquired in 2021.
In a last-ditch effort to secure additional financing from lenders, Northvolt was unable to reach an agreement. This impasse, coupled with previous failures, has left the company without enough runway to address its manufacturing issues and build a solid customer base.
Northvolt’s demise is a significant setback for European efforts to develop a battery manufacturing industry capable of rivaling Chinese companies, which have dominated the market in recent years.
