Northvolt AB

Northvolt AB was a Swedish battery manufacturer founded in 2015 by former Tesla executives Peter Carlsson and Paolo Cerruti. The company aimed to produce sustainable lithium-ion batteries for electric vehicles and energy storage systems. Its first gigafactory, Northvolt Ett, was located in Skellefteå, Sweden, and began production in December 2021. Despite raising over $15 billion in equity, debt, and subsidies, Northvolt faced significant financial challenges, including rising capital costs, geopolitical instability, and supply chain disruptions. In November 2024, the company filed for Chapter 11 bankruptcy protection in the United States, and in March 2025, it filed for bankruptcy in Sweden. The bankruptcy was attributed to rapid overexpansion, operational issues, and a slowdown in the electric vehicle market. As a result, Northvolt ceased its battery cell production in Sweden by June 30, 2025, marking the end of its operations. The company's assets were acquired by Scania, but the main Skellefteå gigafactory was shut down. This event has raised concerns about Europe's ability to compete with dominant Asian battery manufacturers and highlighted the need for cautious scaling and focused execution in green tech ventures.