Swedish battery maker Northvolt filed for bankruptcy last week, creating a major setback for the European electric vehicle sector and leaving a significant financial gap in the EU’s budget.
The company had only $30 million (€28.81 million) in cash left, and its debts, totaling $5.84 billion, include a $313 million loan from the European Investment Bank (EIB). This debt is part of the EU’s push to support European champions in green technologies.
EU Faces Financial Fallout
The European Commission had backed Northvolt’s loans under the European Fund for Strategic Investments, which was set up in 2015 to support infrastructure and innovation. The bankruptcy leaves creditors scrambling for payment, with potential shortfalls impacting the EU budget. The EIB is monitoring the situation closely and aims to find a resolution to protect EU interests.
The EU’s budget for next year, agreed on Monday, is €192.8 billion, with €800 million set aside for unforeseen expenses.