Bankrupt battery manufacturer Northvolt is on the verge of halting production at its final operating plant in Skelleftea, northern Sweden, by the end of June unless a buyer emerges, according to sources familiar with the situation. The factory, which currently runs a single production line supplying cells to truckmaker Scania, has been up for sale since March under the supervision of a court-appointed trustee. However, no serious buyers have materialized.
The staff of approximately 900 workers at the facility are set to attend a virtual meeting hosted by Chief Operating Officer Matthias Arleth on May 22. While details remain under wraps, the meeting is described as a regular update by company spokesperson Matti Kataja.
Northvolt’s rapid expansion and ambitious plans for new factories worldwide contributed to mounting costs and operational hurdles, especially at its flagship Swedish site. Once regarded as Europe’s great hope for a homegrown battery industry, the company accumulated around $10 billion in debt and equity since its inception in 2016, ultimately leading to its bankruptcy filing.
Scania, a major Northvolt supporter and one of its largest customers, previously relied on the company for batteries for electric trucks. In April, Scania agreed to purchase Northvolt’s heavy-industry battery unit, acquiring its production assets, R&D center, and a team of about 260 employees. However, Scania’s CEO Christian Levin recently stated that the company has no intention of acquiring the main Skelleftea plant.
Northvolt has reportedly been in talks with Asian competitors regarding potential partnerships. Despite speculation, no rescue deal has been secured, with China’s CATL and South Korean firms showing limited interest. CATL’s founder, Robin Zeng, noted ongoing discussions with creditors but emphasized there are no guarantees and that resources are limited.
The bankruptcy of Northvolt follows a pattern of setbacks for Europe’s battery ambitions. Britishvolt, another high-profile startup, collapsed last year before its planned gigafactory in Blyth could begin operations. Meanwhile, Asian battery giants continue to expand their presence in Europe.
Northvolt filed for Chapter 11 bankruptcy in the U.S. in November, citing $5.84 billion in debt. A temporary $245 million funding injection from Scania bought the company some time, but a long-term solution has remained elusive. Major shareholders such as Volkswagen Group, Goldman Sachs Asset Management, and Vargas Holding have already written down their investments in the troubled firm.
The potential closure of the Skelleftea factory threatens to leave lasting consequences for the local community, which has invested heavily in developing the site and its surrounding industrial ecosystem. City Director Kristina Sundin Jonsson warned that the loss of production would have a significant short-term impact on Skelleftea, which had become a magnet for new residents and related industries in recent years.
