7 Battery & EV Companies That Have Filed for Bankruptcy

On August 9, 2024, we reported on the declared bankruptcy of China-based luxury EV maker HiPhi, which faces an uncertain future as its parent company, Human Horizons, enters a pre-reorganization phase after filing for bankruptcy. The brand roller-coaster-speed rise and fall can be seen as a cautionary tale for the industry. But theirs is not the only woeful story in the battery and EV industries. With that in mind, we're revisiting this November 2023 feature.

The electric vehicle (EV) and battery industry, despite its rapid growth and critical role in the global transition to sustainable transportation, faces a challenging landscape marked by an increasing number of bankruptcies. This trend raises important questions about the industry's sustainability and the hurdles it must overcome.

A primary challenge faced by EV and battery companies is the capital-intensive nature of the industry. Developing, producing, and distributing EVs and batteries requires significant upfront investment in research and development, manufacturing infrastructure, and supply chain establishment. This high cost of entry and operation can strain the financial resources of companies, especially startups or those without substantial backing. The industry is also grappling with supply chain disruptions, exacerbated by global events such as the COVID-19 pandemic and geopolitical tensions, leading to shortages and increased costs of critical raw materials like lithium, cobalt, and nickel.

Related:The Rise and Fall of HiPhi: An EV Industry Cautionary Tale

At the same time, technological innovation in the EV and battery sectors is rapid and relentless. Staying competitive necessitates companies to continuously invest in research and development. This dynamic can be a double-edged sword: while it drives progress, it also means that companies can quickly fall behind if they are unable to keep pace with technological advancements or fail to achieve anticipated breakthroughs. Additionally, the entrance of traditional automotive giants into the EV space is intensifying competition in an increasingly crowded market space. This heightened competition can squeeze margins and put additional financial pressure on companies.

In this piece, we’re going to look at seven EV and battery companies that filed for bankruptcy in recent years. Read on to learn about 7 battery and EV companies to recently file for bankruptcy.