Northvolt, Europe’s Hope for a Battery Champion, Files for Bankruptcy

Published On Nov 21, 2024, 1:07 PM

Northvolt, a Swedish battery manufacturer, has filed for Chapter 11 bankruptcy protection following several financial challenges. The company had been losing contracts and facing production halts, including a significant $2 billion contract cancellation with BMW. Despite the bankruptcy filing, Northvolt aims to restructure its debt and continue operations, believing there is still strong market demand for electric vehicle batteries. The company reported a considerable loss of $1.2 billion in 2023, which is a significant increase from a $285 million loss in 2022. The bankruptcy process is expected to enable Northvolt to streamline operations and recover by the first quarter of next year.