Rising capital costs, lower demand and geopolitical instability with subsequent supply-chain disruptions all added to the challenge of securing a path forward.

Northvolt said it submitted the bankruptcy filing after an "exhaustive effort to explore all available means to secure a viable financial and operational future for the company." Northvolt's collapse into insolvency represents a major blow to Europe's ambition to become self-sufficient and build out its own EV battery supply chain to catch up to China.

Northvolt, the Swedish maker of battery cells for electric vehicles, may be close to filing for bankruptcy in Sweden, Swedish newspaper Dagens Nyheter (DN) reported on Tuesday. Northvolt sought U.S. Chapter 11 bankruptcy protection in November last year as its cash pile dwindled,

Battery maker Northvolt has filed for bankruptcy in Sweden, dealing a blow to Europe’s battery manufacturing capabilities. The firm said that it had made an “exhaustive effort…to secure a viable financial and operational future for the company”,