Once hailed as Europe’s great battery hope, Northvolt is now in deep crisis. After raising more than $13 billion in debt and equity, the Swedish battery manufacturer filed for bankruptcy last year and is currently searching for a buyer for its core factory, Northvolt Ett, and other assets.
At the end of March, the company laid off over half of its 4,500 workers. Just days later, it officially suspended Chapter 11 proceedings in the U.S., a sign that restructuring efforts have shifted to asset sales and potential takeovers. Northvolt has already started selling off manufacturing equipment meant for its now-abandoned factory expansion in Skellefteå, northern Sweden.
Now, attention has turned to who might step in to acquire the remains of one of Europe’s most ambitious green tech ventures.
Who Could Buy Northvolt Assets?
1. Chinese Battery Giants Eyeing Opportunity
Industry insiders suggest that Chinese manufacturers, who are already investing heavily in battery production across Europe, could see Northvolt as a strategic acquisition. Companies like CATL, the global EV battery leader, already operate plants in Germany and Hungary and recently launched a joint venture with Stellantis in Spain.
However, such a deal would trigger national security reviews and regulatory scrutiny. Sweden, like many European countries, has rules in place to limit foreign—particularly Chinese—takeovers of strategic assets. While Chinese-owned Volvo Cars is still perceived as a Swedish brand, a Northvolt sale to China would likely face fiercer resistance, analysts say.
2. European Carmakers – But Timing Is Off
Auto giants like Volkswagen and Renault have been floated as possible buyers. Volkswagen, which owns a 21% stake in Northvolt, could be a logical acquirer. Yet, recent turmoil in the EV market may complicate such a move. Volkswagen is battling declining sales, rising competition from Chinese automakers, and just announced the closure of three plants and plans to lay off 10% of its workforce.
“Car companies have only been in the battery space for a decade,” says Daniel Brandell, professor of materials chemistry at Uppsala University. “They’re still learning — just like Northvolt.”
Still, their experience in industrial operations could give them an edge in rebooting production.
3. Northvolt’s Own Backers and Partners
Some insiders believe that Northvolt’s backers, or even existing customers, could step in to salvage key divisions.
In January, truck maker Scania provided a €100 million bridge loan during Northvolt’s restructuring. A month later, it acquired Northvolt’s Systems Industrial division, which includes R&D operations in Stockholm and a production facility in Gdańsk, Poland.
Meanwhile, Volvo Cars, another Northvolt partner, has already taken over the battery factory they had co-developed in Gothenburg. Industry watchers say other former investors or partners may quietly be evaluating asset purchases behind the scenes.
4. South Korea or Japan May Hold the Key
If technical know-how becomes the decisive factor, Asian battery giants could emerge as top contenders.
“South Korean or Japanese manufacturers are probably the best-positioned to take over Northvolt’s factory and make it work,” says Brandell. He cites LG Energy Solution and Panasonic—both of which supply global EV leaders—as ideal candidates.
“Panasonic’s technology is the foundation of Tesla’s battery cells,” he notes. “If Northvolt is going to survive in any form, it may need a partner that already knows this game inside and out.”
5. Could the Swedish Government Step In?
Another possibility is state intervention. Some experts argue that Sweden could purchase Northvolt’s assets, then invite investors to relaunch operations under a new model.
PJ Pärson, a partner at VC firm Northzone, believes that although politically sensitive, a state-led rescue could be the smartest economic path. “Battery production is a strategic issue for Europe,” he says. “If Sweden doesn’t act, someone else will — and Sweden will be left covering the closure costs.”
Brandell agrees that public support might be necessary if Sweden wants to remain in the battery race. “This is about future competitiveness and the green transition. Demand for batteries is rising globally. Temporary overcapacity now doesn’t mean we can afford to walk away.”
He emphasizes that the true value in Northvolt’s factory lies in its ability to produce active battery materials—a process that is energy-intensive and strategically critical for Europe’s climate goals.
