STOCKHOLM (Reuters) - The bankruptcy of battery cell maker Northvolt, once the leader of Sweden's green industrial boom, is a huge blow to the country's north and particularly the small town of Skelleftea.

The town, founded 180 years ago as a mining city to serve the surrounding mineral-rich mountains, had long been in decline when Northvolt decided to build its main factory there in 2017. 

Northvolt, with its 3,000 workers, is the biggest employer in the town of around 40,000 people, where there is also a diverse manufacturing sector covering areas such as metals, forestry, plastics, rubber and energy.

Spurred by Sweden's green boom, described locally as the "Northvolt-effect", Skelleftea grew and invested more per capita than any other municipality in Sweden in 2022, building homes and schools and expanding its harbour. 

The bankruptcy, one of the biggest in Swedish corporate history, will alter the future of the town, which is cloaked in snow and darkness for much of the winter before experiencing almost 24 hours of daylight in summer. 

"It's a disaster," Mikael, who only wanted to be identified by his first name, told Reuters. "It's a big blow to Skelleftea and for everyone who lives here," he said, adding that a lot of the enthusiasm over the green boom in the last decade had disappeared. "This is a reality check."    

Lorents Burman, the mayor of Skelleftea, called on the government to act quickly to provide financial support to the battery operation and help find a new owner.  

"It is of course incredibly heavy news and a nightmare," he told Reuters. "The loss of human capital would be huge. There is no other place in Europe where there is a combined expertise of 3,000 people who can build batteries," he said.

Northvolt's problems have sent shockwaves across Sweden's north, with several local authorities seeking more financial support from the central government almost 500 miles (805 km) away. 

"This was not the message that we hoped for," Minister of Enterprise and Energy Ebba Busch told a news conference. She did not announce any new financial support for the failing business but said she hoped a new owner would take over the production. 

"I hope it will be possible to ensure that the business is kept running during the bankruptcy proceedings," she said, adding that she would travel to Skelleftea on Thursday. 

Lena Lundgren, local union representative for IF Metall, which has 1,800 members at Northvolt in Skelleftea, told Reuters that the union had established a crisis centre for its local members.

"It's important that they know that they are not alone in this," she said.