Swedish battery manufacturer Northvolt has filed for bankruptcy, marking a significant setback for Europe’s electric vehicle (EV) battery production. The company cited rising costs, supply chain disruptions, and shifting market demand as key factors behind its financial collapse.

In a statement, Northvolt acknowledged that it had faced “significant internal challenges” while ramping up production, describing the situation as a mix of expected and unforeseen difficulties in a highly complex industry.

The company had made an “exhaustive effort” to secure a sustainable financial and operational future but was ultimately unable to overcome compounding challenges, including geopolitical instability and higher capital costs.

Failed Turnaround Efforts

Northvolt had previously sought Chapter 11 bankruptcy protection in the United States in November 2023, hoping to restructure and regain financial stability. However, despite the temporary relief, the company was unable to reverse its financial struggles.

Now, a court-appointed trustee will oversee the sale of Northvolt’s assets in Sweden.

A Setback for Europe’s Green Transition

Founded in 2016, Northvolt was considered a key player in Europe’s push for clean energy and EV battery production, positioned to compete with Chinese and South Korean battery giants. The company had secured around $15 billion (€13.8 billion) from governments and investors, underscoring its importance in Europe’s green transition.

However, declining EV demand, partially linked to reductions in government subsidies, led some investors to pull back funding. In 2023, the Swedish government also declined to offer major subsidies, further limiting Northvolt’s financial flexibility.

Northvolt had ambitious expansion plans, with production capacity expected to rise nearly sixfold by 2030, from 192GWh to 1,142GWh, according to Benchmark Minerals Intelligence. Now, with its collapse, Europe faces a greater reliance on foreign battery manufacturers, particularly from China and South Korea, while homegrown companies struggle to build capacity.

Northvolt’s failure highlights the challenges facing European battery production, as the continent strives to establish a competitive supply chain in the global EV market.

Spanish banking giant Banco Bilbao Vizcaya Argentaria (BBVA) is set to introduce cryptocurrency trading services in Spain, allowing customers to buy, sell, and manage Bitcoin and Ether transactions directly through the bank’s mobile app.

The move follows BBVA’s approval from the Spanish Securities and Exchange Commission (CNMV) under the European Markets in Cryptoassets Regulation (MiCA), which requires banks to secure regulatory clearance before offering crypto-related services.

Gradual Rollout of Crypto Trading

BBVA announced that the service will first be introduced to a small group of users before gradually expanding to all private banking customers in Spain over the next few months.

“Customers in Spain will be able to manage their crypto trading orders within the app, alongside their accounts, investments, and regular banking activities,” the bank said in a statement.

This development places BBVA among the frontrunners in Europe’s crypto banking sector, alongside Germany’s Deutsche Bank and France’s Société Générale, both of which have taken steps to integrate digital assets into traditional banking services.

BBVA’s Global Crypto Expansion

BBVA has already been operating crypto trading services in Switzerland since 2021 and Türkiye since 2023, where regulatory frameworks were established before MiCA became fully effective in December 2024.

Unlike some financial institutions that rely on third-party custodians, BBVA emphasized that it will use its own cryptographic key custody platform to safeguard customers’ assets.

“BBVA will maintain full control over safeguarding its customers’ crypto assets without relying on external providers,” the bank stated, reinforcing its commitment to security and regulatory compliance.

A Growing Trend Among Banks

The introduction of crypto services by traditional financial institutions reflects the growing mainstream adoption of digital currencies, particularly as regulatory frameworks in Europe and the U.S. evolve.

While BBVA’s crypto trading service will be available upon customer request, the bank clarified that it will not provide advisory services on crypto investments.

With this move, BBVA strengthens its position in Europe’s digital asset sector, potentially setting the stage for other banks to follow suit as cryptocurrency adoption continues to expand.