Swedish company Northvolt, which specializes in producing batteries for electric vehicles, has filed for bankruptcy, dealing a significant blow to Europe's green energy ambitions.
Founded in 2016, Northvolt attracted around $15 billion in investment from giants such as Volkswagen (21% stake) and Goldman Sachs (19%). However, the company ran into financial difficulties, accumulating more than $8 billion in debt, which led to its bankruptcy.
The development highlights the difficulties Europe faces in trying to compete with Asian battery makers, especially China, which dominates the green technology market. Northvolt management has called on European policymakers to invest significantly in developing a local battery industry to reduce dependence on Asian suppliers.
The bankruptcy of Northvolt also affects numerous jobs and the economy of the regions where the company operates, especially in northern Sweden. This calls into question Europe's ability to support such capital-intensive projects without significant government support and strategic investment.