STOCKHOLM, Nov 15 (Reuters) - Swedish battery maker

Northvolt has been discussing the possibility of bankruptcy

protection in the United States as one of several options for

the cash-strapped company to survive, two people with knowledge

of the matter told Reuters.

Northvolt has in recent months gone from being Europe's best

shot at a home-grown electric vehicle battery champion to racing

to stay afloat by slimming down, hobbled by production problems,

the loss of a major customer and trouble raising more cash.

The lithium-ion battery manufacturer, which has received

some 10 billion euros ($10.57 billion) in funding since its

startup in 2016, last July launched a complete review of its

strategy.

Business daily Dagens Industri, citing unnamed sources, late

on Thursday reported that Northvolt was leaning towards Chapter

11 proceedings under the U.S. Bankruptcy Code as a way to sort

out its finances.

Earlier in the week the publication reported, citing

sources, that talks between the cash-strapped firm and

creditors, shareholders and at least one customer on a

short-term financing deal had stalled.

One of the people told Reuters that discussions among

stakeholders on a short-term funding deal have resumed despite

the talks becoming more difficult in recent weeks.

A Northvolt spokesperson declined to comment on whether the

company was planning on seeking Chapter 11 proceedings or on

other speculation regarding the future of the company.

"Since the beginning of the strategic review, we have

constantly been discussing different options and that hasn't

changed throughout the process," the spokesperson told Reuters.

"We communicate results once we have found a conclusion,

while we continue the dialogue with our stakeholders."

($1 = 0.9463 euro)