Northvolt is a Swedish startup company that has been drawing accolades from investors since its inception in 2015. The company was founded by two former Tesla executives and it builds lithium-ion batteries for electric vehicles (EVs). Investors were so excited for the little company that they poured billions of dollars into it. Northvolt was praised as the “poster child” for the green energy movement and there would be nothing but blue skies ahead! Then, the company suddenly filed for bankruptcy on Thursday.

Investors were so bullish for Northvolt that they’d poured $10 billion into the little company in recent years. Just a year ago, CEO and co-founder Peter Carlsson was bragging that they might take the company public. The real problem for Northvolt—and the entire European EV market—started back in 2021.

That was the year that Communist China started doing exactly what Donald Trump warned would happen in America if Kamala Harris had been elected president. China started dumping tons of EVs in the EU, and their leaders were too cowardly to impose tariffs to protect their own automakers and suppliers like Northvolt.

In 2020, cheap Chinese EVs made up less than 10% of the European car market. In 2023, almost half of all EVs for sale in Europe came from China. Most Europeans are global warming cultists, so they’re very excited about electric cars. But when a BMW iX costs up to $124,000 and a Renault Dacia Spring EV built in China costs around $20,000, it doesn’t take a rocket scientist to figure out what’s going to happen next.

The European EV market is collapsing in a death spiral right now. BMW canceled a multi-billion-dollar order for EV batteries from Northvolt back in June. The company is scaling back its EV production because the market is saturated with much cheaper EVs produced in China.

Northvolt started scrambling for capital, but the loss of the BMW contract was too much to overcome—especially since the company was already deep in the red. Northvolt filed for bankruptcy protection in the US on Thursday and the CEO resigned the next day.

Investors were shocked to learn in the filing that after pouring more than $10 billion into Northvolt, the company only had $30 million in cash on hand, and almost $6 billion in debt. You’d think the head honchos from the Kamala Harris campaign had been running the company after burning through that much money in such a short period of time.

Goldman Sachs Asset Management was one of the financiers that poured money into Northvolt. Just seven months ago, Goldman Sachs was telling investors that they’d get 4.29 times as much money back for their investment if they jumped on the Northvolt bandwagon. They also said it would be worth 6 times as much by November 2025.

Instead, Goldman Sachs now intends to write down $900 million by the end of the year. One fund manager who got bilked on yet another “green” scam (will these people ever learn) said investors were shocked by the speed at which Northvolt blew through so much cash. This was supposed to be the poster child for the future of the electric car market in Europe. They might as well have dumped a bunch of cash into a hole in the ground and set it on fire.

Since we already recognize the pattern by this point, here’s what’s going to happen next. Every consumer who was suckered into buying an EV with a Northvolt battery in it is going to be in for a nasty surprise the next time they need their vehicle serviced.