On March 12 local time, Northvolt, a renowned European battery manufacturer, announced on its official website that due to the exhaustion of the company’s cash, it had filed for bankruptcy in Sweden.
Founded in 2016, Northvolt emerged at a time when Europe aimed to shake off its dependence on Chinese batteries. Since its establishment, it has secured over $10 billion in equity, debt, and public financing. Its largest shareholders include Volkswagen, which holds a 21% stake, and Goldman Sachs Group, with a 19% shareholding. However, over the years, Northvolt has consistently struggled to meet the promised production levels and quality control standards for its lithium-ion, lithium-metal, and sodium-ion batteries.
Last June, BMW terminated a battery supply contract worth $2.1 billion, and many of Northvolt’s core European customers also cancelled their agreements with the company, further deteriorating its financial situation.
In an attempt to address the crisis, Northvolt had previously taken a series of measures. For example, in September 2024, it announced the layoff of 1,600 employees, accounting for a quarter of its total workforce in Sweden. It closed its research and development department in California, relocated the related operations back to Sweden, and suspended the expansion plan of its Skellefteå factory. In November, the company made additional efforts to restructure its business, but these actions ultimately failed to reverse the downward trend.
The bankruptcy of Northvolt is not only a heavy blow to the company itself but also has a profound impact on the European battery industry. It may lead to a reshuffle of the industry landscape, and other battery manufacturers in Europe and around the world may try to seize the market share left by Northvolt. At the same time, this also sounds a warning to the battery manufacturing industry, highlighting the challenges and risks faced by companies in a highly competitive and rapidly changing market environment. As the global demand for batteries continues to grow, only those companies that can maintain stable production, high-quality products, and reasonable financial management will be able to stand out in the long run.