In a huge blow to Europe’s plan to set up its own battery industry to power electric cars, Peter Carlsson resigned as CEO of battery-maker Northvolt on Friday morning, shortly after the company filed for Chapter 11 bankruptcy protection in the U.S.

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

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.