European battery pioneer Northvolt collapses: what now?

Northvolt, once Europe's hope for electric vehicles, has filed for bankruptcy. The Swedish company, which owes billions of euros in the state, could not survive the disappointing sales of EV batteries in Europe. The bankruptcy puts the European electric vehicle market on edge and raises questions about the future of battery production in the region. Northvolt had previously attracted significant investments from European governments. What does this step mean for European technology and industry?

Fall of a European giant

Northvolt's financial situation has dramatically worsened. The company has almost €6 billion in current liabilities and only enough funds for one week of operational activities. Management feels The impact directly: CEO and co-founder Peter Carlsson has resigned, although he will remain involved as an advisor. Northvolt's problems became apparent in November 2024 when the company initiated Chapter 11 bankruptcy proceedings in the United States to obtain temporary protection from creditors. The declining demand for electric vehicles in Europe has hit the company hard, leading to the loss of 1,600 jobs.

The problems at Northvolt did not arise suddenly. The company had already been forced to cancel its plans for a new factory in Sweden. Although the shareholders agreed to continue the activities, as required under Swedish law, this proved insufficient to turn the tide. The bankruptcy affected all parts of the company, which was struggling with major financial problems and a continued decline in the demand for batteries for electric vehicles.

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