Swedish battery maker Northvolt has filed for bankruptcy after failing to become Europe’s beacon of hope in the Chinese-dominated battery industry.
The Volkswagen, Goldman Sachs and BlackRock-backed start-up announced bankruptcy on Wednesday, blaming its downfall on “rising capital costs, geopolitical instability, subsequent supply chain disruptions, and shifts in market demand.”
Tom Johnstone, Interim Chairman of Northvolt’s Board of Directors, said:
“We are hopeful that the foundation we built — the technology, the expertise, and the commitment to sustainability — will continue to drive change in the industry.”
The start-up was founded by two former Tesla executives in 2016 and quickly gained investment from European governments, closing its initial funding round with $12 million.
It was reportedly founded with a mission to develop the world’s greenest battery to enable the European transition to renewable energy and reduce reliance on Chinese battery companies.
In November last year Northvolt’s lithium-metal battery plant in California was sold off to Silicon Valley start-up Lyten after the Swedish company failed to secure financial aid.
Northvolt AB, Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB and Northvolt Systems AB have all filed with the Swedish court, however Northvolt Germany and Northvolt North America will reportedly not filing for bankruptcy in their respective jurisdictions.
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