Once hailed as Europe’s battery champion, Northvolt collapses under debt, job cuts, and lost investors.
Northvolt, the Swedish electric vehicle battery startup once seen as Europe’s answer to Asia’s battery dominance, has officially collapsed. The company has filed for bankruptcy in Sweden, marking a dramatic downfall for what was once a flagship green energy initiative.
The firm, which received over $10 billion in funding from investors like Volkswagen and Goldman Sachs, said it could no longer “secure the necessary financial conditions” to stay afloat. A court-appointed trustee will now oversee the liquidation of Northvolt’s assets and the settlement of its debts.
For the company’s 5,000 employees, the future is now uncertain. Northvolt has pledged to work with authorities and unions to provide support, but the scale of the fallout remains unclear.
The bankruptcy comes after months of turmoil. In November, Northvolt sought Chapter 11 protection in the US, admitting it needed $1 billion to $1.2 billion to survive. Its CEO, Peter Carlsson, resigned shortly after.
Founded in 2016, Northvolt aimed to revolutionise battery production by using green energy to power its Swedish gigafactory. Instead, it struggled to get the plant running and was forced to suspend expansion. Last year, the company axed 1,600 jobs, hoping to stabilise its finances, but it was too little, too late.
Northvolt cited a “series of compounding challenges”, including rising capital costs, supply chain disruptions, geopolitical instability, and shifting market demand. Critics also pointed to its overambitious expansion, with simultaneous projects in Sweden, Germany, and the US stretching resources too thin.
Interim chair Tom Johnstone called the bankruptcy “an incredibly difficult day”, saying, “We set out to build something groundbreaking, but the challenges proved insurmountable.”
With its ambitions in ruins, Northvolt’s collapse signals a major setback for Europe’s efforts to compete in the global EV battery race—leaving the industry scrambling for answers.
