The write down reflects the challenges faced by Northvolt, including missed production targets and a slower-than-expected growth in electric vehicle demand in Europe.

Volkswage has significantly written down its 21% stake in Northvolt that filed for bankruptcy protection in the U.S. last week.

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.

Beleaguered Swedish battery manufacturer Northvolt announced on Thursday that it was filing for bankruptcy in the U.S., striking a blow to Europe’s ambitions for homegrown lithium-ion batteries.

Volkswagen and Goldman Sachs write off stakes in Northvolt due to missed production targets, resulting in significant financial losses.

FREE TO READ] Governments, carmakers and investors must recraft the region’s strategy after the fall of the Swedish group

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.