Northvolt CEO Steps Down Amid Chapter 11 Bankruptcy Filing

Peter Carlsson has resigned as CEO of Swedish battery manufacturer Northvolt, just one day after the company filed for Chapter 11 bankruptcy protection in the United States. Carlsson, who co-founded Northvolt in 2016, has led the company since its inception.

On November 21, 2024, Northvolt announced that it had voluntarily filed for Chapter 11 reorganization in the U.S. This type of filing is often viewed as a way for companies to restructure while maintaining operations, with the possibility of securing additional financing. Northvolt stated that the filing would enable it to restructure its debt and appropriately scale its business.

The company also revealed plans to seek new funding sources, aiming to secure around $145 million in cash collateral. One of Northvolt’s existing customers has pledged $100 million in new financing to support operations through debtor-in-possession funding. Northvolt assured that it would continue to meet customer demands, fulfill obligations to vendors, and pay staff wages throughout the restructuring process.

This decision comes after a series of challenges for the company, once considered Europe’s top battery producer. Setbacks included the cancellation of a $2 billion electric vehicle battery order from BMW. In September 2024, Northvolt initiated a strategic review, leading to the cancellation of a planned gigafactory in Poland, the sale of its facility in Kvarnsveden, Sweden, a halt in operations at the Northvolt Ett Upstream 1 cathode active material facility, and a reduction in its workforce.

Following Carlsson’s resignation, he will transition to a senior advisory role and continue serving on Northvolt’s board of directors. Leadership responsibilities will now fall to Pua Aaltonen-Forsell, the Chief Financial Officer, and Matthias Arleth, President of Cells, who will step into the Chief Operations Officer position. They will be supported by Chief Restructuring Officer Scott Millar as the company begins its search for a new CEO.

Carlsson described his resignation as a pivotal moment for Northvolt, highlighting that the Chapter 11 filing would allow the company to reorganize and enhance its operations while remaining committed to customer and supplier obligations. He noted that the timing was right to hand over leadership to a new generation.

Tom Johnstone, Northvolt’s interim chair, expressed gratitude for Carlsson’s contributions, noting that his insight would continue to benefit the company in his new advisory capacity. Johnstone emphasized that the fresh leadership would guide Northvolt into the next phase of its development.

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