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.

Battery maker Northvolt has filed for bankruptcy in Sweden, dealing a blow to Europe’s battery manufacturing capabilities. The firm said that it had made an “exhaustive effort…to secure a viable financial and operational future for the company”,

BRUSSELS — Swedish battery-maker Northvolt filed for bankruptcy in Sweden on Wednesday, marking the final unraveling of a company once seen as Europe’s standard bearer for the sector. Facing a cash crunch in November, Northvolt filed for Chapter 11 bankruptcy protection in the U.S. as it looked to raise more funds and restructure.