HELSINKI, March 12 (Xinhua) -- Swedish battery manufacturer Northvolt has filed for bankruptcy in Sweden, the company announced on Wednesday, citing financial difficulties.

Once considered a flagship of Sweden's green transition, Northvolt has faced persistent losses in recent years. According to Swedish Television (SVT), the company submitted its bankruptcy application to a Stockholm court.

"Northvolt has encountered a series of compounding challenges in recent months that have weakened its financial position, including rising capital costs, geopolitical instability, supply chain disruptions, and shifts in market demand," the company stated in a press release.

In November 2024, Northvolt sought Chapter 11 bankruptcy protection in the United States. Despite these efforts, financial struggles persisted.

Industry experts point to the company's difficulty in scaling up production as a key issue. "The main problem is that they have not been able to accelerate production," said SVT's business analyst, Kristina Fagerstrom.

The Swedish Engineers Union warned that the bankruptcy would have significant economic repercussions. "This will have an unprecedented societal impact," said Ulrika Lindstrand, Chair of the union, expressing concerns over Sweden's competitiveness in the industry.

Swedish Deputy Prime Minister Ebba Busch stated at a press conference on Wednesday that the government is prepared to support Northvolt in its search for a new long-term owner following its bankruptcy.

Northvolt's major stakeholders include Volkswagen Group, investment bank Goldman Sachs, and Swedish insurance company Folksam.

The bankruptcy affects Northvolt AB, the main legal entity, along with several Swedish subsidiaries, including Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB, and Northvolt Systems AB. With approximately 5,000 employees in Sweden, this marks one of the largest corporate bankruptcies in the country's history.

Founded in 2016 by former Tesla executives, Northvolt specialized in lithium-ion battery cell production for electric vehicles and energy storage solutions, striving to create sustainable, high-performance batteries using recycled materials and renewable energy. Enditem

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