Nov 23 (Reuters) - Funds managed by Goldman Sachs ( GS )

will write off nearly $900 million after Swedish lithium-ion

battery producer Northvolt filed for Chapter 11 bankruptcy

earlier this week, Britain's Financial Times reported on

Saturday.

The Goldman private equity funds, which together ranked as

the second-largest shareholders in Northvolt, plan to write down

their $896 million investment to zero by year end, the report

said, citing letters to investors seen by the FT.

"While we are one of many investors disappointed by this

outcome, this was a minority investment through highly

diversified funds. Our portfolios have concentration limits to

mitigate risks," Goldman said in a statement.

Northvolt did not immediately respond to a Reuters request

for comment.

The group went in a matter of months this year from being

Europe's best shot in a vital industry for the energy transition

to racing to stay afloat, hobbled by production problems and

dwindling funds.

Northvolt's CEO and co-founder Peter Carlsson stepped down

on Friday, a day after the company filed for U.S. Chapter 11

bankruptcy protection.

In November 2019 the company had completed its $1 billion

equity capital raising, aimed at funding its plans to build

Europe's biggest lithium-ion battery plant, led by Germany's

Volkswagen and Goldman.