Swedish battery maker Northvolt has filed for bankruptcy after failing to secure funding amid ongoing financial struggles.
The company had experienced a series of mounting challenges in recent months as it struggled to hit production targets despite liquidity support from lenders including Goldman Sachs and Blackrock.
It had previously sought US Chapter 11 bankruptcy protection in November.
“This is an incredibly difficult day for everyone at Northvolt,” Tom Johnstone, interim chairman of Northvolt’s Board of Directors, said.
“We set out to build something groundbreaking — to drive real change in the battery, EV and wider European industry and accelerate the transition to a green and sustainable future.
“The outcome is especially hard considering not only the level of engagement and interest we held with potential partners and investors in recent months, but also the clear improvement and upwards trajectory that we have been seeing in Northvolt’s production in Skellefteå, where cell output from serial production lines has doubled and we have secured a 50 per cent improvement in production yield since September.”
Northvolt’s demise will be seen as a major blow for Europe’s battery sector as it grapples with China’s dominance.
“Like many companies in the battery sector, Northvolt has experienced a series of compounding challenges in recent months that eroded its financial position, including rising capital costs, geopolitical instability, subsequent supply chain disruptions, and shifts in market demand,” the company said in a statement.
A Swedish court-appointed trustee will oversee the bankruptcy process, including the sale of the business and its assets.
Northvolt had more than 5,000 employees and had previously completed one of the largest green loan raises in European start-up history, raising nearly £4bn from a conglomerate of banks including JP Morgan and Citigroup.