The Northvolt battery manufacturer is approaching the end as it files for bankruptcy in Sweden

On Wednesday, Northvolt filed a bankruptcy in Sweden, the last blow to Europe attempts to create a battery manufacturing juggernaut that could compete with the Chinese giants.

Although the Swedish startup has collected more than $ 14 billion, it was short of money recently. Northvolt had previously deposited for the bankruptcy of chapter 11 In the United States in November. Since then, it has been during the race to keep money and collect new funds in order to avoid insolvency.

These efforts have failed.

“Northvolt has experienced a series of composition challenges in recent months which have eroded its financial situation, in particular the increase in capital costs, geopolitical instability, subsequent disturbances of the supply chain and market demand changes,” said the company in a statement.

European countries and car manufacturers had pinned their hopes on Northvolt, which represented a daring bet on the manufacture of EU batteries. Most battery factories are built and managed by Chinese, Japanese or Korean companies.

The manufacturer in difficulty had obtained A debt agreement of $ 5 billion In January 2024, but he had trouble generating income because he burned $ 100 million per month.

Northvolt’s fortune took a more decisive turn when BMW canceled a $ 2 billion contract in June 2024. The battery manufacturer had not been able to deliver in time.

To keep the species, he dismissed 1,600 employees and sold the assets of his Cuberg division, a Bay Area semiconductor battery start-up which she acquired in 2021.

Northvolt had looked for additional funding from lenders, but he could not conclude an agreement with them. This impasse, associated with previous failures, was not sufficient to extend the company’s track far enough to control its manufacturing problems and build a solid clientele.