The bankruptcy of battery cell maker Northvolt, once the leader of Sweden's green industrial boom, is a huge blow to the country's north and particularly the small town of Skelleftea. The town, founded 180 years ago as a mining city to serve the surrounding mineral-rich mountains,

Rising capital costs, lower demand and the disruptive impact of geopolitical instability on supply chains all weighed heavily on the battery maker.

Northvolt, the Swedish maker of battery cells for electric vehicles, may be close to filing for bankruptcy in Sweden, Swedish newspaper Dagens Nyheter (DN) reported on Tuesday. Northvolt sought U.S. Chapter 11 bankruptcy protection in November last year as its cash pile dwindled,