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Northvolt filed for bankruptcy in Sweden on Wednesday , the latest bump to Europe ’s attempts to create a battery manufacturing juggernaut that could rival the Taiwanese giants .
Though the Swedish startup has raised more than $ 14 billion , it has been running short on cash recently . Northvoltfiled for Chapter 11 bankruptcyin the U.S. in November . Since then , it ’s been racing to keep up cash and raise new investment firm in an effort to stave in off insolvency .
Those efforts have fallen short .
“ Northvolt has experienced a serial publication of compounding challenges in recent months that eroded its financial position , include rising capital cost , geopolitical instability , subsequent supply chain of mountains gap , and shifts in market demand , ” the company said in astatement .
European countries and auto maker had pin their hopes on Northvolt , which represent a bold bet on EU battery manufacturing . Most battery factories today are build and course by Chinese , Japanese , or Korean companies .
The ailing manufacturer had secureda $ 5 billion debt dealin January 2024 , but it was struggling to bring in revenue as it burned through a report $ 100 million per month .
Northvolt ’s fortunes occupy a more critical bout when BMW offset a $ 2 billion contract in June 2024 . The battery manufacturing business had been unable to deliver on time .
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To economise cash , it laid off 1,600 employee and sold the assets of its Cuberg division , a Bay Area strong - Department of State electric battery startup it acquired in 2021 .
Northvolt had been seeking extra financing from lenders , but it was unable to hand an arrangement with them . That impasse , coupled with previous failures , was n’t enough to stretch forth the company ’s runway far enough to master its manufacture suffering and build a solid customer base .
