This case chronicles the rise and fall of Swedish battery manufacturer Northvolt. It highlights the ambition and vulnerability of Europe’s cleantech industrial efforts. Founded in 2015 by former Tesla executives Peter Carlsson and Paolo Cerruti, the company set out to build “the world’s greenest battery” through a vertically integrated, hydropower-driven model centred on its flagship Northvolt Ett gigafactory in Sweden. Northvolt rapidly became a European champion, expanding across multiple countries, attracting major automotive clients, and raising over $15 billion, including a record $5 billion green loan in early 2024. However, chronic production underperformance at Northvolt Ett left output far below its stated capacity, increasing costs and weakening cash flow. Operational missteps became evident when BMW cancelled a €2 billion contract in mid-2024. By late 2024, mounting liquidity strain intensified under heavy leverage. Despite its promise and scale, Northvolt ultimately filed for Chapter 11 in November 2024, followed by the bankruptcy of its main Swedish entity in March 2025, marking a dramatic collapse of a flagship European green industry venture.

• Analyze strategic and execution risk in a capital-intensive scale-up.
• Assess resilience and capital structure.
• Evaluate governance, ERM, and early-warning signals.
• Interpret conflicting signals and behavioural dynamics.
• Reflect on how institutional support is designed for the green industry.
• Situate Northvolt in a global competitive context.