Swedish electric vehicle (EV) battery developer and manufacturer Northvolt has collapsed into administration, with at least $1bn of investment needed for a rescue deal.

The CEO of Northvolt, Peter Carlsson, today resigned amongst ongoing fallout from the Swedish EV battery maker’s U.S. Chapter 11 bankruptcy filing.

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.

Northvolt, a major Swedish battery maker, filed for bankruptcy in the U.S., seeking to restructure the debt it had taken on to pay for its rapid expansion.

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

This move is part of a strategic effort to restructure debt, scale operations and secure a sustainable foundation for continued operations.

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

Northvolt’s chief executive has resigned a day after Europe’s big battery hope filed for bankruptcy in the US. Peter Carlsson took responsibility for the dramatic collapse during a town-hall meeting with employees on Friday morning,

Northvolt AB said its chief executive officer, Peter Carlsson, is stepping down as the Swedish battery maker embarks on a restructuring under bankruptcy court protection.

Northvolt's CEO Peter Carlsson is stepping down, the Swedish maker of battery cells for electric vehicles said on Friday, one day after the group filed for U.S. Chapter 11 bankruptcy protection. "The Chapter 11 filing allows a period during which the company can be reorganised,