The group, in serious financial difficulties, requested its placement under the protection of American bankruptcy law. A duo of managers will take over in the interim while awaiting the appointment of a new boss.
The co-founder of the Swedish electric battery manufacturer Northvolt, Peter Carlsson, is leaving his position as CEO, the group in great financial difficulties announced on Friday. Northvolt, which has just requested its placement under the protection of American bankruptcy law, will be managed by a duo of managers pending the appointment of a new boss, he said in a press release.
Peter Carlsson remains a member of the Northvolt board of directors and advisor to management. “The application for placement under chapter 11”allows the company to reorganize itself, develop its activities while respecting its commitments to its customers and suppliers and, ultimately, to position itself for the long term,” commented Peter Carlsson in the press release. “So now is the right time for me to pass the baton to the next generation of leaders”he added.
Late against the Asian giants
Chief Financial Officer Pia Aaltonen-Forsell and Chief Operating Officer Matthias Arleth lead the group, with the support of Head of Restructuring Scott Millar, the group said. With its placement under US bankruptcy protection, Northvolt hopes to complete its restructuring by the end of the first quarter of 2025. Peter Carlsson co-founded Northvolt in 2016 with Paolo Cerutti, both men coming from Tesla.
Northvolt is considered one of the great European hopes in terms of batteries at a time when Europe is seeking to catch up with Asian giants, Chinese (CATL, BYD) and Korean (LG) in particular. But the group has accumulated significant production delays in recent months and has decided to refocus its activity solely on the production of battery cells, abandoning the rest of the production chain (cathodes, recycling, etc.). According to the Swedish press, Northvolt's debt reaches $5.84 billion for only $30 million in available liquidity. Northvolt announced at the end of September the elimination of 1,600 jobs out of 6,500 and the freezing of the development of its main production site, in Skelleftea in the north of Sweden, to adapt to its tense financial situation.
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