Once hailed as Europe’s most promising battery startup, Northvolt is set to cease operations at its flagship factory in Skellefteå by June 30, according to a statement from bankruptcy trustee Mikael Kubu. The news follows Swedish Radio Ekot’s report that the company is about to lose its last major customer, the truck-maker Scania, effectively ending any short-term hope of recovery.
Northvolt had been kept afloat during bankruptcy proceedings thanks largely to Scania’s continued support. Despite Northvolt’s filing for Chapter 11 bankruptcy in the U.S. and insolvency in Sweden, Scania, also a shareholder, committed an extra $100 million and agreed to pay above-market prices for battery cells. But even this exceptional backing wasn’t enough to turn the tide.
“The bankruptcy estate has been able to continue battery cell production with a limited number of employees, supported by the existing customer,” said Kubu. “However, this arrangement is not sustainable in the long term.” The trustee has now initiated a gradual wind-down of production operations at Northvolt Ett, the company’s Skellefteå facility.
Buyer Search Ongoing, But Outlook Grim
Around 900 employees remain at the Skellefteå site, down from previous headcounts as the estate made large redundancies to cut costs and maintain minimal output. Despite efforts to find a buyer—backed by an ongoing due diligence process—Kubu notes that no credible path exists to transfer production to a new owner any time soon.
Northvolt’s industrial battery division, Systems Industrial, was sold to Scania in February, prior to the main bankruptcy filing. That unit, which focuses on heavy industry applications and employs about 300 people in Stockholm and Gdańsk, was one of Northvolt’s last valuable assets.
With no new buyer in sight and its main customer walking away, the sun is now setting on a startup once considered a flagship of European climate innovation. Northvolt’s collapse underscores the enormous capital, scale, and resilience required to succeed in the battery manufacturing sector—even with significant backing and market hype.
