the fall of the European champion of batteries for electric cars accelerates

After several months of negotiations and despite massive layoffs, Northvolt has officially filed for Chapter 11 protection in the United States. At the same time, the Swedish company announced that Peter Carlsson, co-founder of the company, had resigned as CEO. The situation is getting complicated.

The year 2024 will forever mark a turning point in the history of Northvolt. Promised to become a European battery champion, the Swedish company is slowly dying. After an initial restructuring and the elimination of 1,600 positions a few weeks ago, Northvolt is running out of cash. The firm has just filed for protection under American bankruptcy law.

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Today, the company's debt peaks at $5.84 billion (or approximately €5.58 billion). The cash flow has shrunk to $30 million. By officially going into receivership, Northvolt hopes to revive itself by getting its hands on $245 million. In its press release, the company explains that one of its clients must provide it with financing of 100 million dollars.

Last step before closing?

Despite this delicate situation, the Swedish giant assures that “ operations will continue as usual, similar to other international companies that have used the Chapter 11 process to reorganize their financial obligations “. Northvolt promises that employee salaries will be well paid. The company wants to be reassuring and adds that it “does not This is not a bankruptcy procedure. ».

Northvolt prefers to speak of a simple “ reorganization “. While it is true that Chapter 11 offers companies in serious financial difficulties “ time to restructure their debt » or « sell assets “, however, the situation is not ideal. To put it simply, it is the last step before a possible rescue or closure. It turns out that even the Swedish government has ruled out providing new funding.

Even the co-founder jumps ship

To make matters worse, Peter Carlsson, CEO and co-founder of Northvolt, resigned on Friday November 22. For the moment he will remain a member of the board of directors and advisor to management, but the company will now be managed by “ a duo of leaders “. Mr. Carlsson considered this transition period to be “ the right time to hand over to the next generation of leaders ».