Europe’s ambition to lead the world in green industries was always going to be a stretch given China’s head-start in many low-carbon technologies. When it comes to electric vehicle batteries, the outlook is especially bleak.

By Marie Mannes STOCKHOLM (Reuters) -Battery cell maker Northvolt has filed for bankruptcy in Sweden, the company said on Wednesday, marking one of the country's largest corporate failures and effectively ending Europe's best hope of developing a rival to challenge China.

The future of battery manufacturer Northvolt's planned factory in northern Germany has been cast into doubt after the Swedish company filed for bankruptcy on Wednesday. Operations for Northvolt's German subsidiary are to continue,

Battery maker Northvolt has filed for bankruptcy in Sweden, capping the downfall of a company once regarded as Europe’s best hope of competing in an industry dominated by China.

Northvolt, the Swedish battery cell maker for electric vehicles, said on Wednesday it had filed for bankruptcy in Sweden, one of the country's largest and ending Europe's best hope of developing a rival to major Asian EV battery players.

Rising capital costs, lower demand and the disruptive impact of geopolitical instability on supply chains all weighed heavily on the battery maker.

Northvolt has declared bankruptcy in Sweden, but says its North American operations are solvent. The company is building a large battery factory on Montreal's South Shore.

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." Struggling electric vehicle battery manufacturer Northvolt on Wednesday said it has filed for bankruptcy in Sweden.

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”,