Its demise leaves Europe without a home-grown champion to compete with Chinese battery-makers that dominate the sector and the critical raw material supply chain.
At its peak, Northvolt counted Volkswagen and Goldman Sachs as backers and had contracts with multiple automakers, including BMW.
“This is obviously very bad news. Mistakes have certainly been made in the company’s industrial and economic project,” said Renew MEP Pascal Canfin. “The EU must not give up on building a European battery industry.”
A Swedish court-appointed trustee will oversee the company’s sale and that of its assets.