India, March 13 -- Swedish Electric Vehicle (EV) battery maker Northvolt, founded by two former Tesla executives, has gone bankrupt, in a major blow to European efforts to challenge Asian dominance in this sector.

Northvolt, founded in 2016, had been struggling under a mountain of debt, slow demand, and production delays, leading to the bankruptcy, which may be one of the biggest in modern Swedish history, according to a report by news agency AFP.

The battery maker's two largest shareholders are German carmaker Volkswagen which is also in financial difficulty, and US investment bank Goldman Sachs.

Northvolt had said in its US Chapter 11 bankruptcy filings that it owed $5.8 billion. This came last November as the company tried to buy ti...