March 13, 2025: Troubled Swedish battery developer Northvolt said on March 12 it had filed for bankruptcy in Sweden.
The company said it had taken the decision following an exhaustive effort to explore all available means to secure a viable financial and operational future.

Northvolt said that like many companies in the battery sector, it had experienced a series of compounding challenges in recent months that eroded its financial position, including rising capital costs, geopolitical instability, subsequent supply chain disruptions, and shifts in market demand.

The company also admitted significant internal challenges in its ramp-up of production. These included those expected by engagement in a highly complex industry while others were “unforeseen”.
A Swedish court-appointed trustee will now oversee the sale of the business and its assets and settlement of outstanding obligations.

The announcement comes four months after Northvolt AB and some of its subsidiaries in the US filed for Chapter 11 bankruptcy protection in that country,
Northvolt said on March 12 that Northvolt Germany and Northvolt North America are not filing for bankruptcy in their respective jurisdictions.

“As wholly owned subsidiaries of Northvolt AB, any decisions regarding those entities will be made by the court-appointed trustee of Northvolt AB in consultation with the group’s lenders at the appropriate time.”

Tom Johnstone, interim chairman of Northvolt’s board, said: “For me personally, it remains key for Europe to have a homegrown battery industry, but it is a marathon to build such an industry. It needs patience and long-term commitment from all stakeholders.”

Earlier this year, Northvolt admitted it had been importing cathode active material from overseas — after a documentary cast doubt on the firm’s sustainability credentials.