Northvolt runs out of charge, declares bankruptcy in Sweden

Europe’s hopes for a native battery supply chain have taken another substantial blow. Almost four months after the company filed for Chapter 11 bankruptcy in the US, Northvolt announced on 12 March 2025 that it has finally run out of money in its native Sweden. The long-struggling battery maker had been shedding executives and offloading business units constantly during the interval, often for negligible amounts to its former collaborators.

In accordance with Swedish insolvency law, a court-appointed trustee will oversee the sale of Northvolt’s assets, settlement of outstanding obligations, and transition of stakeholders. The Board of Directors maintains confidence in its products’ value to customers and investors. In an official press release, the company opined that it failed despite—not because of—its battery technology. Specific challenges cited included the compounding effects of rising capital costs, geopolitical instability, supply chain disruption, and shifts in market demand.