Northvolt, a prominent Swedish electric vehicle battery startup, has declared bankruptcy, signaling a substantial setback for Europe's ambitions in the battery sector. Despite securing over $10 billion in funding and support from major players like Volkswagen and Goldman Sachs, the company faced ongoing financial struggles that culminated in a Chapter 11 filing in the US. With 5,000 employees now in uncertainty, Northvolt’s leadership expressed commitment to supporting staff. The bankruptcy comes after operational difficulties at its Swedish factory, which had aimed to produce green energy-driven EV batteries, further complicating its future prospects in the competitive industry.
This is an incredibly difficult day for everyone at Northvolt, said Tom Johnstone, Northvolt's interim chair. We set out to build something groundbreaking to drive real change in the battery, EV [electric vehicle] and wider European industry and accelerate the transition to a green and sustainable future.
Northvolt needed to raise between $1bn (800m) and $1.2bn to restore its business. The company, whose slogan was make oil history, received more than $10bn in equity, debt and public financing since it was founded in 2016.
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