F EW European startups have attracted as much attention—and none as much capital—as Northvolt. On November 21st the Swedish maker of batteries for electric vehicles ( EV s), and a would-be European champion, went bankrupt, having raised $15bn from governments and investors. Its boss, Peter Carlsson, resigned shortly after.

Northvolt's financial collapse deals a blow to Europe's plan to set up its own battery industry to power electric cars, stirring a debate about whether it needs to do more to attract investment as startups struggle to catch up with Chinese rivals.

I t was supposed to be a battery pioneer, a symbol of European competitiveness and an example of industrial policy done right. Yet on November 21st Northvolt, Europe’s best-funded startup, filed for bankruptcy. A day later its boss and founder, Peter Carlsson, announced his resignation. What went wrong?

It was Europe's flagship battery production. At least, it wanted to be. The Swedish company Northvolt was placed under bankruptcy protection. The dream thus becomes a nightmare. Founded in 2015 by former Tesla executives and renamed Northvolt in 2017,

Northvolt transformed in a matter of months from Europe's best shot at a homegrown electric-vehicle battery champion to a struggling company.

Northvolt, Europe’s standard bearer for building a domestic electric-vehicle supply chain, has filed for bankruptcy.

Northvolt, the Swedish maker of battery cells for electric vehicles, said on Thursday it has filed for Chapter 11 bankruptcy protection in the U.S., dealing a blow to Europe's hopes that its most developed battery player would reduce Western car makers' reliance on Chinese rivals.

The company’s woes are symptomatic of a wider malaise among companies that make batteries for electric vehicles.

Northvolt's financial collapse deals a blow to Europe's plan to set up its own battery industry to power electric cars, stirring a debate about whether it needs to do more to attract investment as startups struggle to catch up with Chinese rivals.