VWAGY significantly reduces its 21% stake in Northvolt and signs a contract with Novonix to procure synthetic graphite material.

Volkswagen has written down the majority of its 21 per cent stake in Northvolt over the past year ahead of the Swedish battery maker’s filing for Chapter 11 bankruptcy, according to people close to the German carmaker.

Volkswagen , Northvolt's top shareholder, has significantly written down its 21% stake in the Swedish battery cells maker that filed for bankruptcy protection in the United States last week, two people familiar with the matter said.

Volkswagen has substantially written down its 21% stake in Northvolt, a Swedish battery cell manufacturer, following the company's recent filing for bankruptcy protection in the US, reported Reuters.

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.

Volkswage has significantly written down its 21% stake in Northvolt that filed for bankruptcy protection in the U.S. last week.

Volkswagen (OTCPK:VWAGY) has taken a major writedown of its 21% stake in the Swedish battery company, Northvolt, Reuters reported Monday, citing two sources. The writedowns at the German automobile giant were done throughout the current financial year,

Northvolt transformed in a matter of months from Europe's best shot at a homegrown electric-vehicle battery champion to a struggling company.

Northvolt's financial collapse deals a blow to Europe'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.