The company, based in Sweden with operations in the UK, cited the August bankruptcy of electric vehicle parts provider Proterra and complications with its battery supplier as factors that restricted its production capacity and ability to attract enough investment.
Volta Trucks plans to file for bankruptcy in the UK soon as well.
In a statement, the company's board of directors said it had "not taken this course easily or lightly and is fully aware of the significant impact this will have on the organisation’s dedicated workforce".
The company had previously secured approximately 300 million euros ($316 million) in investor funding and reported an order backlog exceeding 5,000 vehicles.
Volta Trucks had selected an Austrian factory for production and was progressing toward large-scale manufacturing.
It was one of dozens of EV start-ups that emerged in the past decade, driven by the relative ease of developing a battery vehicle, compared with a traditional engine-driven vehicle, and spurred on by cheaper financing.
In recent years, several other electric vehicle startups have garnered billions in investor funds, yet many have encountered obstacles in achieving mass production. With interest rates on the rise, fundraising has become more challenging for startups, leading to a few bankruptcies in the sector, including those of Proterra and Lordstown.
Sources: Volta Trucks, Reuters