The company and its assets will be sold after it filed for bankruptcy in Sweden, sinking Europe’s best hope for competing against Asian rivals.

Battery cell maker Northvolt has filed for bankruptcy in Sweden, the company said on Wednesday, marking one of the country's largest corporate failures and effectively ending Europe's best hope of developing a rival to challenge China.

Northvolt, the Swedish battery cell maker for electric vehicles, said on Wednesday it had filed for bankruptcy in Sweden, one of the country's largest and ending Europe's best hope of developing a rival to major Asian EV battery players.

Europe’s ambition to lead the world in green industries was always going to be a stretch given China’s head-start in many low-carbon technologies. When it comes to electric vehicle batteries, the outlook is especially bleak.

Northvolt, a Swedish-based battery maker, filed for bankruptcy in its home country as rising debts defeated one of Europe’s best chances at