Northvolt, the Swedish electric vehicle battery maker, announced on Friday that its CEO and co-founder, Peter Carlsson, is stepping down, a day after the company filed for U.S. Chapter 11 bankruptcy protection. The move follows months of financial strain and production hurdles that have left the company in urgent need of fresh capital.
The bankruptcy filing, made in a Texas court, allows Northvolt to restructure while maintaining operations and honoring commitments to customers and suppliers. “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,” Carlsson stated.
Carlsson, who co-founded Northvolt and previously worked as a Tesla executive, will transition to a senior advisory role and remain on the board. Chief Financial Officer Pia Aaltonen-Forsell and Matthias Arleth, the company’s president of battery cells, will temporarily lead Northvolt as interim executives while the search for a new CEO begins.
The company, which employs approximately 6,600 staff across seven countries, acknowledged that its cash reserves can sustain operations for only about a week. However, it has secured $100 million in interim financing to continue operations during the bankruptcy process.
Northvolt said it needs to raise between $1 billion and $1.2 billion to stabilize its business and complete restructuring efforts. The company is actively seeking partners to finance its recovery, including completing major battery facilities in Germany and Canada.
“Any and all interested parties, regardless of their desired transaction type, are encouraged to contact Rothschild as soon as possible and submit proposals by early December,” the company noted in its court filing.
Northvolt’s Chapter 11 filing follows reports of missed production targets and reduced output at its Swedish battery-cell plant. Despite these setbacks, the company expressed optimism about its potential to recover.
“Northvolt trusts that it can build on its billions of dollars of investment and groundbreaking facilities and technology to achieve a value-maximizing recapitalization or sale in Chapter 11,” the filing stated.
In case a restructuring plan fails to materialize, Northvolt has engaged financial services firm Hilco Global to assist with a possible liquidation process. The company said it expects to complete its restructuring by the first quarter of 2025.
