Northvolt AB Files for US Bankruptcy Protection, CEO Steps Down

Sweden's Northvolt AB and eight affiliated debtors have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The company was launched with the aim of becoming a pioneer in European electric vehicle (EV) battery production.

Chapter 11 will provide Northvolt AB with the financing to focus on operational improvements and supporting customers, while allowing for restructuring, reorganisation, and fundraising to secure a long-term competitive positioning.

The company has also announced that Peter Carlsson will step aside from his role as CEO.

He remains a Member of the Board and will take on a role as Senior Advisor.

The search process for a new CEO has been initiated.

Carlsson has led Northvolt since its inception in 2016.

Carlsson comments: “Today marks a significant new phase for Northvolt as well as for me personally. The Chapter 11 filing allows a period during which the company can be reorganized, ramp up operations while honoring customer and supplier commitments, and ultimately position itself for the long-term. That makes it a good time for me to hand over to the next generation of leaders."

Northvolt’s Interim Chairman of the Board of Directors, Tom Johnstone, adds: “We are incredibly thankful to Peter for his vision and dedication to building Northvolt from an unprecedented idea to becoming Europe’s battery manufacturing champion. Peter’s perspective will continue to benefit Northvolt, as a Senior Advisor and Member of the Board, while the new leadership will steer the company into the next stage.”

Northvolt Ett in Sweden is the first truly European battery gigafactory delivering to customers at large scale.