“The EU must not give up on building a European battery industry,” says senior MEP.
Swedish battery-maker Northvolt filed for bankruptcy in Sweden today, marking the final unraveling of a company once seen as Europe’s standard bearer for the sector.
Facing a cash crunch in November, Northvolt filed for Chapter 11 bankruptcy protection in the U.S. as it looked to raise more funds and restructure.
“Ultimately, however, with limited time and financial resources available, the company was unable to conclude the necessary agreements to secure its future,” Northvolt said in a statement.
Its demise leaves Europe without a home-grown champion to compete with Chinese battery-makers that dominate the sector and the critical raw material supply chain.
At its peak, Northvolt counted Volkswagen and Goldman Sachs as backers and had contracts with multiple automakers, including BMW.
“This is obviously very bad news. Mistakes have certainly been made in the company’s industrial and economic project,” said Renew MEP Pascal Canfin. “The EU must not give up on building a European battery industry.”
A Swedish court-appointed trustee will oversee the company’s sale and that of its assets.
