An EV-battery maker that raised $15 billion from investors including Goldman Sachs filed for bankruptcy protection after almost running out of cash

Northvolt’s factory in northern Sweden makes electric-vehicle batteries.

Northvolt, the electric-vehicle-battery company founded by two former Tesla executives, has filed for Chapter 11 bankruptcy protection after struggling to ramp up production.

The Swedish company said Thursday that it voluntarily entered bankruptcy proceedings in the US so it could restructure its debt and obtain new investment.

Soon after the bankruptcy was announced, CEO Peter Carlsson, one of Northvolt’s founders, said he would step down as part of the process.

Bankruptcy documents showed Northvolt had about $5.8 billion in debt and just $30 million in available cash — enough to fund its operations for about seven days.

In bankruptcy documents, Goldman Sachs, JPMorgan, and Microsoft were all listed as creditors. It had raised more than $15 billion since its founding in 2016.

Northvolt said it had secured extra funding of about $245 million, including $145 million in cash, and a $100 million commitment from a customer to provide a debtor-in-possession loan — a specialized credit line for firms going through bankruptcy.

“This decisive step will allow Northvolt to continue its mission to establish a homegrown, European industrial base for battery production,” Tom Johnstone, Northvolt’s interim chair, said in a statement.

“Despite near-term challenges, this action to strengthen our capital structure will allow us to capture the continued market demand for vehicle electrification,” he added.

Northvolt plans to continue operating during the bankruptcy proceedings.

Founded by Carlsson and Paolo Cerruti, Northvolt aimed to revolutionize battery manufacturing, but it has struggled in recent months.

The firm’s bankruptcy comes after difficulties in ramping up battery production at its facility in Skellefteå, Sweden, close to the Arctic Circle. In June, BMW pulled out of a $2.1 billion order for battery cells for its EVs, citing delays in deliveries.

In September, Northvolt said it would lay off about 1,600 staffers.

Automakers in Europe are struggling with weak demand for EVs and rising competition from Chinese rivals.

On Wednesday, Ford said it would cut 4,000 jobs in Europe by the end of 2027.

Volkswagen, Europe’s largest car company, is considering closing factories in Germany for the first time and cutting tens of thousands of jobs. VW faces stuttering demand in Europe and has lost market share in China to local rivals selling cheaper EVs and hybrids.