STOCKHOLM (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."

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