Volkswagen bet big on European-made batteries a few years ago with two massive investments in Northvolt, the Swedish manufacturer. Now the automaker’s €1.4 billion stake is worth less than half that, according to Reuters. The write-downs occurred throughout the current fiscal year as the situation at Northvolt deteriorated.
It’s unclear what Volkswagen’s current stake is worth now, though it’s unlikely to have risen given the battery manufacturer’s decision to file for Chapter 11 bankruptcy last week. Northvolt fought to avoid bankruptcy by laying off 1,600 employees in September and selling assets in November from its acquisition of Cuberg. The company was reportedly burning through $100 million a month, according to Swedish media.
This article was originally published by Techcrunch.com. Read the original article here.