Northvolt CEO and co-founder Peter Carlsson announced his resignation on Friday, a day after the Swedish battery maker filed for Chapter 11 bankruptcy protection in the U.S. The company, once hailed as Europe’s leading electric vehicle battery producer, has been struggling to stay afloat following production setbacks and a lack of funding. Carlsson, who co-founded Northvolt and previously worked at Tesla, revealed the company now requires between USD 1 billion and USD 1.2 billion to restore its business.
In his statement, Carlsson said, “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.” Despite stepping down, Carlsson will continue to serve as a senior adviser and remain on the company’s board, while a search for a new CEO has begun.
Northvolt, which employs around 6,600 people across seven countries, had warned that it only had enough cash to sustain operations for one week. To support its bankruptcy proceedings, the company secured USD 100 million in new financing, which will allow operations to continue. The company’s restructuring efforts are expected to be completed by the first quarter of 2025.
The company’s production challenges and missed targets have been well-documented, particularly at its battery-cell plant in northern Sweden, where output has been curtailed. Northvolt is now looking for potential investors or partners to finance its restructuring and ensure the completion of key battery plants in Germany and Canada.
If the company cannot secure the needed investment, it has also engaged financial services firm Hilco Global to assist with an “orderly liquidation process.” Northvolt remains hopeful that it can leverage its advanced technology and significant prior investments to achieve a successful recapitalisation or potential sale.
As Northvolt navigates its uncertain future, it remains in talks with various parties to explore all possible options for recovery.