Northvolt cofounder urges EU not to give up EV battery dream
Firm has filed for bankruptcy protection, needs 1.01.2 bln
EU hopes hit by weak EV sales, production issues, China strength

STOCKHOLMGDANSK, Nov 25 Reuters Northvolt39;s financial collapse deals a blow to Europe39;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.

Europe39;s biggest hope for an electric vehicle battery champion filed for U.S. Chapter 11 bankruptcy protection on Thursday after talks with investors and creditors including Volkswagen and Goldman Sachs for funding failed.

The Swedish company, whose motto is make oil history, has received more than 10 billion in equity, debt and public financing since its 2016 startup. Volkswagen and Goldman Sachs each own about one fifth of its shares.

Northvolt said on Friday it needed 1.01.2 billion in new funds under the restructuring process, which it hopes will end by the end of March.

In recent months, it has shrunk the business and cut jobs in a bid to shore up its finances. But it has struggled to produce sufficient volumes of highquality batteries, and lost a 2 billion euro 2.1 billion contract from BMW in June.

That has left Europe39;s ambitions to build its own battery industry looking a distant dream.

In recent years, Northvolt led a wave of European startups investing tens of billions of dollars to…