Swedish battery manufacturer Northvolt applies for bankruptcy, a big slap for Europe

North Volt, the Swedish company that produces batteries for cars, has applied for bankruptcy in Sweden. The battery manufacturer reports this in one declaration. The company produces batteries for car brands Volvo, Scania and BMW, among others.

For a long time, Europe had established its hope for the company to be independent of Chinese batteries and the European Investment Bank invested nearly a billion euros in North Volt at the beginning of last year.

In October, North Volt managed to raise 15 billion euros in financing, which then was considered a European record for a non-listed company. Then the company was already struggling with payment arrears. At that time there were problems paying salaries of employees and suppliers. The company also had to pay 25 million euros to the Swedish tax authorities.

In addition, the company was investigating the police above the head. They were about employees who died in the workplace or died out of working hours under unclear conditions.

North Volt says that “all available resources has investigated for a future of the company”, but said he was suffered from various factors, such as “rising costs” and “geopolitical instability”.

In addition, the North Volt did not succeed in producing more batteries due to “both expected and unforeseen circumstances.”

An administrator appointed by the Swedish court will oversee the bankruptcy of the battery manufacturer can be read in the statement. He will also investigate whether it is possible to sell the Swedish branch of the company.

The chairman of the board of North Volt states that he is hopeful about a possible restart of the company, but also says that it is up to the administrator to determine how that should go.

The company also has an American and a German branch, but they have not yet applied for bankruptcy.