Northvolt, a Swedish electric vehicle battery maker, has filed for bankruptcy after failing to obtain the necessary financing to maintain its operations. The company announced Wednesday, March 12 that despite exploring “all available options” and receiving “liquidity support from our lenders and major counterparties,” it still cannot continue in its current form.
Founded in 2016, Northvolt is considered a key figure in Europe competing with Asia and the United States for battery production, a key component of zero-emission vehicles. However, the company struggles with debt, slow demand and production setbacks. These issues eventually reached May 2024, when automaker BMW canceled orders worth 20 billion euros ($2.2 billion).
In September, Northvolt announced it was cutting 1,600 jobs (representing a quarter of its workforce) and halted its expansion in its Skellefteå location in northern Sweden. The company then filed for Chapter 11 bankruptcy protection in the United States in November to restructure its debts and restructure its operations.
According to U.S. filings, North Voltt’s total debt totaled $5.8 billion.
