Sweden’s struggling electric car battery maker Northvolt said Wednesday it had filed for bankruptcy in Sweden after failing to secure financing to enable it to continue operations.

Northvolt said in a statement that despite pursuing “all available options” and getting “liquidity support from our lenders and key counterparties, the company was unable to secure the necessary financial conditions to continue in its current form”.

Founded in 2016, Northvolt has been seen as a cornerstone of European attempts to catch up with Asia and the United States in the production of battery cells, the crucial component of zero-emission cars.

But it has struggled under a mountain of debt, slow demand and production delays, which in May 2024 led car manufacturer BMW to drop an order worth two billion euros ($2.2 billion).

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In September, the Swedish company said it was slashing 1,600 jobs — a quarter of its staff — and suspending the expansion of its Skelleftea site in northern Sweden.

Northvolt then filed for Chapter 11 bankruptcy protection in the United States in late November to enable it to restructure its debt and reorganise its business.

The battery maker said in US filings that it owed $5.8 billion.

AFP