After another battery startup bankruptcy, can Europe ever cut reliance on China?

Norwegian battery startup Morrow Batteries has filed for bankruptcy following a severe cash crunch, marking a significant setback for Europe’s efforts to establish a home-grown battery manufacturing industry. The company, once led by former Equinor CFO Lars Christian Bacher, aimed to compete with dominant Asian producers, particularly Chinese firms, as Europe sought to reduce its reliance on imported battery technology. Morrow’s financial collapse comes just a year after Swedish battery maker Northvolt also filed for bankruptcy, raising concerns about the viability of European battery startups. Morrow Batteries’ failure underscores the challenges faced by European companies in scaling up production and securing sufficient investment to rival established Chinese manufacturers. Despite the presence of larger European players such as ACC, Verkor, and PowerCo—linked to major automakers Stellantis, Renault, and Volkswagen—analysts warn that Europe remains heavily dependent on Chinese supply chains for critical energy transition technologies. This dependence poses strategic risks amid growing geopolitical tensions and the urgent need for clean energy solutions. Industry experts emphasize the importance of developing a robust European battery sector to ensure energy sovereignty and support the continent’s climate goals. Julia Poliscanova, batteries lead at the Brussels-based advocacy group Transport & Environment, highlighted the critical nature of battery technology and the risks of relying on external suppliers. The bankruptcies of Morrow and Northvolt may dampen investor confidence, potentially delaying Europe’s ambitions to build a competitive, self-sufficient battery industry capable of supporting the transition to electric vehicles and renewable energy storage. The setbacks faced by Morrow Batteries and Northvolt illustrate the broader difficulties in establishing a sustainable European battery supply chain amid fierce global competition. As Europe continues to push for green energy independence, the financial struggles of these startups raise questions about the scale of investment, innovation, and policy support needed to challenge China’s dominance in the sector.