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.

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