Northvolt's Struggle: A Crisis in European Clean-Tech

Swedish battery maker Northvolt has filed for bankruptcy, shaking up Europe's clean-tech industry. Sweden's deputy prime minister urges the EU to revise funding policies to support Northvolt, hoping to attract a potential buyer and counter China's dominance in the electric vehicle battery market.

The European Union is being urged to revise its clean-tech funding regulations to aid Northvolt, the bankrupt Swedish battery maker, as it hunts for a new owner. Sweden's deputy prime minister emphasized the necessity of these changes during a conversation with Reuters on Monday.

Northvolt, an electric vehicle battery manufacturer, declared bankruptcy in Sweden last week, a move that signifies one of the country's most significant corporate collapses. This event disrupts what was considered Europe's leading effort to rival China in the battery production sphere.

Europe's ambitions to create a counterbalance to China's battery monopoly are at stake, heightening the importance of potential EU reforms. Sweden hopes these measures could provide the needed financial support to maintain competition in the clean-tech sector.

(With inputs from agencies.)