It was Europe’s best hope in the electric battery industry.

Once seen as Europe's best hope in the electric battery industry, Swedish EV battery startup Northvolt has filed for bankruptcy in Sweden due to financial and operational challenges.

The company’s board of directors said in a statement that it made the decision after an “exhaustive” search for viable solutions to secure its future.

Northvolt cited multiple compounding factors, including geopolitical instability, rising capital costs, supply chain disruptions, and shifting market demand. Additionally, internal struggles to scale production, both expected and unforeseen, further strained its operations.

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Despite attempts to restructure financially—such as filing for Chapter 11 in the United States and receiving liquidity support from lenders and key partners—the company was unable to comply with the necessary financial conditions for continued operations. As a result, the board determined that bankruptcy was the only viable course while exploring financing options within Sweden’s bankruptcy process.

A Swedish court-appointed trustee, Mikael Kubu, will now oversee the sale of Northvolt’s business and assets, as well as the settlement of its obligations. The process aims to ensure an orderly transition for employees, partners, and creditors.

The bankruptcy filing includes Northvolt, Northvolt Ett, Northvolt Labs, Northvolt Revolt, and Northvolt Systems. However, Northvolt’s subsidiaries in Germany and North America are not part of the filing, and decisions regarding their future will be made by the trustee in consultation with the company’s lenders.

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Founded in 2015 in Stockholm, Northvolt’s initial ambition was to develop the world’s greenest battery cell and establish a European supply of batteries, creating the E.U.’s EV battery backbone to compete against Asian and American manufacturers such as BYD and Tesla.

Northvolt was producing lithium-ion, sodium-ion, and lithium-metal cells, Voltpack mobile systems and decarbonized electricity grids. In 2024, it raised a staggering $5 billion in non-recourse project financing, marking the largest green loan ever secured in Europe.

Aside from Sweden, the company operated in Germany, Canada, and Poland. It cherished partners like Volvo, Scania, Volkswagen, and Epiroc among others.

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