Europe's EV ambitions suffer a major setback as Northvolt files for bankruptcy.

• Northvolt, a Swedish battery manufacturer, filed for Chapter 11 bankruptcy protection in the U.S., dealing a blow to Europe's electrification aspirations.
• Northvolt announced that the company will proceed with its restructuring process, which is expected to be completed in the first quarter of next year, and will continue operations as usual during this time.
• Northvolt, based in Stockholm, Sweden, has long been viewed as Europe's top contender for establishing a domestic electric-vehicle battery industry leader.

Northvolt, a Swedish battery manufacturer, filed for Chapter 11 bankruptcy protection in the U.S., dealing a significant blow to Europe's electrification aspirations.

The company, once one of Europe's most valuable privately held tech firms, announced on Thursday that it would file for voluntary bankruptcy in order to restructure its debt, reduce its business operations, and establish a solid foundation for its future.

The company will remain operational during the restructuring process, which is anticipated to conclude in the first quarter of the following year.

Northvolt, a partner of major European automakers, produces lithium-ion batteries for the growing electric vehicle industry, which is facing increasing competition.

Northvolt's interim chairman, Tom Johnstone, stated that this decisive step will enable the company to fulfill its mission of creating a European industrial base for battery production.

Although we face short-term obstacles, taking this step to fortify our financial foundation will enable us to seize the sustained demand for electric vehicles.

Despite being Europe's top hope for a homegrown EV battery champion, the Stockholm-based business is currently facing financial difficulties and undergoing a major cost-cutting initiative.