Investing.com -- Northvolt, a Swedish company known for producing battery cells for electric vehicles, announced its bankruptcy filing in Sweden on Wednesday, ending Europe’s aspirations to establish a competitor to the dominant Asian electric vehicle (EV) battery manufacturers.
In November of last year, Northvolt applied for U.S. Chapter 11 bankruptcy protection as its cash reserves were depleting. The company was striving to secure the necessary funding to address ongoing issues with increasing production at its primary facility in northern Sweden.
The company, which employs over 5,000 people, stated in a press release, "The company was unable to secure the necessary financial conditions to continue in its current form."
Northvolt’s failure is a setback for Europe, which had high hopes that the company would lessen the dependence of Western automobile manufacturers on Chinese competitors.
Notable among these are battery maker Contemporary Amperex Technology Ltd. (CATL) and BYD (SZ:002594), a company involved in both EV and battery production.
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