Northvolt files for bankruptcy in US as CEO steps down

Swedish battery company Northvolt has filed for bankruptcy in the US, in a setback for Europe’s ambitions to compete with the largest Asian producers of lithium ion batteries for electric vehicles.

The company’s co-founder and chief executive Peter Carlsson will also step down from the struggling battery maker, it said.

The news highlights the difficulty of scaling up production of lithium ion batteries, especially at a cost that is competitive with Chinese companies. Northvolt’s factory in the north of Sweden has an annual capacity to produce 16 gigawatt hours of batteries, but the company struggled to reach even 1 GWh of battery cell production.

The company said the Chapter 11 filing in the Southern District of Texas would allow it to restructure and secure new financing.

What does this mean for European battery supply?

Here are the key facts from the bankruptcy:

Watch Benchmark analysts discuss what Northvolt’s bankruptcy means for European battery production.