Northvolt, the Swedish EV battery maker founded by former Tesla executives, has filed for bankruptcy after failing to secure necessary funding. Struggling against high capital costs, supply chain disruptions, and fluctuating demand, the company could not meet the conditions for continued operation despite earlier Chapter 11 protections. Northvolt was positioned as Europe's potential leader in EV battery production, challenging dominant Asian firms but faced numerous issues, including debt and reliance on Chinese technology. A trustee will now oversee the sale of its business and assets.
Northvolt had raised over $15 billion but faced escalating debts, operational inefficiencies, and reliance on Chinese equipment, which hindered its production capabilities.
Tom Johnstone, Northvolt's interim chair, expressed the difficulty of the day, emphasizing their intent to drive change in the EV and battery industries.
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