Swedish battery manufacturer Northvolt has announced that co-founder Paolo Cerruti will step down from his role as Chief Executive Officer of its North American division. Karen Chang, who has been instrumental in the development of the company’s Quebec-based battery gigafactory, will serve as interim CEO during the transition.
Cerruti will continue to serve as chairman of the board for Northvolt’s Canadian entity and remain involved in the ongoing development of Northvolt Six, the company’s Canadian plant.
This leadership change follows the resignation of co-founder and CEO Peter Carlsson in November, which occurred shortly after the company filed for U.S. Chapter 11 bankruptcy protection. Carlsson, who co-founded Northvolt with Cerruti in 2016 after both had worked at Tesla, will remain on the board and serve as a senior advisor.
In its bankruptcy filing, Northvolt stated that its Canadian and German operations were not part of the proceedings and that progress would continue in these regions. The company had initially projected that its Canadian plant would commence operations in 2026, though recent statements indicate that this timeline may be extended.
In November, Reuters reported that the Canadian federal and Quebec provincial governments had each committed $1 billion for the first phase of the plant’s construction but were not planning further investments.
Earlier this week, Northvolt sold its stake in a joint venture with Volvo Cars for an undisclosed sum and announced plans to explore potential collaborations in North America.
The company has also requested that more than 100 shareholders provide $1.29 billion over the next two years to support its restructuring efforts.
Source: Reuters