Northvolt, the Swedish maker of battery cells for electric vehicles, said on Thursday it has filed for Chapter 11 bankruptcy protection in the U.S., dealing a blow to Europe's hopes that its most developed battery player would reduce Western car makers' reliance on Chinese rivals.

Swedish battery maker Northvolt filed for Chapter 11 bankruptcy protection in the U.S., delivering a blow to Europe’s electrification ambitions.

"The company will continue to make deliveries to customers, while fulfilling obligations to critical vendors and payment of wages to employees," according to a statement from Northvolt. Read also: EU to back Trump on China trade pressure in exchange for Ukraine support Northvolt filed for bankruptcy in the U.