Wed 12/March/2025 – 09:07 PM
Northfolt, which manufactures electric car batteries cells, announced today, Wednesday, that it had applied for bankruptcy in Sweden, registering one of the largest bankruptcy cases in the country, and actually ending the best hope for Europe in developing a competitor competing with China.
Northfolt, a leader in the manufacture of electric car batteries, declares bankruptcy
“We have not taken this decision lightly, noting that all means were followed to avoid the bankruptcy of the company, which is exposing 5,000 jobs,” Tom Johnston, Northfolt Chairman, told a news conference.
Northfolt, which manufactures electric car batteries, requested protection under the eleventh chapter of the US bankruptcy law last November, with diminishing cash, and rushed to secure the necessary funding to repair problems that enhance production in its main factory in northern Sweden.
The company’s debts were slightly more than $ 8 billion in all Northvolt entities, which declared bankruptcy, according to the eleventh chapter documents of the American Banking Law.
This bankruptcy is one of the largest bankruptcy cases in the history of Swedish companies, and the most prominent since the bankruptcy of SABATOMOBEL Auto Industry more than a decade ago, as it is a painful blow to northern Sweden, especially for the small town of Skilvity, the home of the Northfolt Eight factory.
The European auto sector was hoping to reduce Northfolt from the dependence of Western auto companies on its Chinese competitors, such as Catl, EV (EV) for the batteries industry, and BYD (BYD) batteries.
The Swedish company has received more than 10 billion dollars of shares, debt and public financing since its foundation in 2016, and its largest owners are Volkswagen with a 21%stake, and Goldman Sachs with a stake of 19%.
