Rudolph Angler Swedish battery maker Northvolt filed for bankruptcy last week, undermining Europe’s electric vehicle ambitions and creating a €300 million shortfall in the EU’s budget.
Northvolt’s bankruptcy protection under the US Chapter 11 procedure came as the company had just $30 million (€28.81m) in cash left. The firm owes $5.84 billion, with a portion of it due to the EU, which has backed several loans for Northvolt’s battery factory.
European Commission spokesperson Veerle Nuyts confirmed that the EU’s exposure stands at $313 million, covered under the European Fund for Strategic Investments.
EU’s Efforts for Green Transition at Risk
The EU has been working on building up its green transition, notably through the European Battery Alliance, created in 2017 to strengthen Europe’s position against China. In 2023, EU-installed manufacturing capacity reached 167 Gigawatt hours.
Despite these efforts, Northvolt’s collapse is a major setback, leaving creditors to recover what they can. The European Investment Bank is closely monitoring the situation, committed to resolving the issue while safeguarding EU interests. Any shortfall could impact the EU budget, which already faces significant financial pressure.