Northvolt has filed for bankruptcy in Sweden after failing to secure the funding needed to stay afloat.
The Swedish battery maker had struggled for months and sought US Chapter 11 protection in November.
It could not fix production issues at its main plant and ran out of cash. A Swedish court-appointed trustee will now handle the sale of its assets and settle outstanding debts.
Northvolt had more than 5,000 employees and owed over $8 billion. It raised $10 billion from investors including Volkswagen and Goldman Sachs. A $5 billion green loan to expand production was cancelled as its problems mounted.
Europe saw Northvolt as its best chance to compete with Chinese battery giants like CATL and BYD.
BMW cancelled a $2 billion order last year after Northvolt failed to meet supply commitments. Former CEO Peter Carlsson said before stepping down that the company needed $1.2 billion to survive.