STOCKHOLM, March 11 (Reuters) - Northvolt, the Swedish

maker of battery cells for electric vehicles, may be close to

filing for bankruptcy in Sweden, Swedish newspaper Dagens

Nyheter (DN) reported on Tuesday.

Northvolt sought U.S. Chapter 11 bankruptcy protection in

November last year as its cash pile dwindled, trying to secure

funds that would allow it to fix persistent problems in scaling

up output at its flagship plant in northern Sweden.

Citing two sources, DN reported that Northvolt's board would

file for bankruptcy on Wednesday for "the entire Swedish

business" if the company fails to raise new funding by then.

Northvolt's board is expected to make a definitive decision

about the company's future Tuesday evening or early Wednesday,

DN reported.

Northvolt declined to comment.

Once the court approves a bankruptcy application it appoints

a trustee to take charge of the company and divide assets to

creditors. Operations are shut down and while the trustee can

still try to find a buyer for the company, management loses all

control of the decisions.

Swedish business daily DI also reported on Tuesday that

"people close to the involved players" fear Northvolt is

"getting close to a bankruptcy".

Europe had hoped that Northvolt would reduce Western car

makers' reliance on Chinese rivals such as battery maker CATL

and EV and battery maker BYD.

The company, whose motto was "make oil history", received

more than $10 billion in equity, debt and public financing since

its 2016 inception, counting Volkswagen, with a 21%

stake, and Goldman Sachs, holding 19%, as its biggest owners.

However, its former CEO Peter Carlsson, who stepped down

shortly after the company's Chapter 11 filing in November, said

at the time of his departure that the company needed up to $1.2

billion to restore its business.

Northvolt early last year clinched a $5 billion green loan

deal with a group of lenders, intended to pay for a large plant

expansion, but the funding was later cancelled as the company's

problems mounted.

At the end of January, Northvolt's debt stood at more than

$8 billion, previously released documents showed.