Northvolt CEO steps down after company files for bankruptcy protection

By Stine Jacobsen, Reuters November 22, 2024
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FILE PHOTO: Northvolt CEO Peter Carlsson poses for a picture at the company’s offices in Stockholm, Sweden, March 7, 2017. REUTERS/Niklas Pollard/File Photo

COPENHAGEN (Reuters) – Northvolt‘s CEO Peter Carlsson is stepping down, the Swedish maker of battery cells for electric vehicles said on Friday, one day after the group filed for U.S. Chapter 11 bankruptcy protection.

“The Chapter 11 filing allows a period during which the company can be reorganised, ramp up operations while honouring customer and supplier commitments, and ultimately position itself for the long-term,” the outgoing CEO said in a statement.

Northvolt on Thursday filed for Chapter 11 bankruptcy protection in the United States, dealing a blow to Europe’s hopes that its most developed battery player would reduce Western car makers’ reliance on Chinese rivals.

The lithium-ion battery maker on Thursday said it only had cash to support operations for about a week and that it had secured $100 million in new financing for the bankruptcy process, allowing operations to continue.

Northvolt, which employs around 6,600 staff across seven countries, in its Chapter 11 filing said it expects to complete the restructuring by the first quarter of 2025.

Carlsson will take on a role as senior adviser and remain a member of the board, the company said, adding that the search for a new CEO has started.

(Editing by Terje Solsvik)