Swedish battery company Northvolt filed for US Chapter 11 bankruptcy protection On Thursday, CEO Peter Carlsson stepped down the following day.
Northvolt needs raises between $1 billion and $1.2 billion to return to full operation, Carlsson told Reuters and other media on Friday. On Thursday, the company said it only had enough cash to fund operations for about a week, and that it had received $100 billion in cash to continue the bankruptcy process, according to Reuters.
Supply of Northvolt Six battery plant in Quebec, Canada
In its Chapter 11 filing, Northvolt said it expected to complete the restructuring required by the bankruptcy filing in the first quarter of 2025. Carlsson told the media that the bankruptcy process will give the company time to reorganize and improve operations, while also respecting customers. supplier responsibilities.
Carlsson will remain on the company's board and will take on the new role of senior advisor. It is said that the company has started searching the new CEOand will be led by current CFO Pia Aaltonen-Forsell for the time being.
Volvo and Northvolt partner in battery development and production
Northvolt was the subject of high hopes for the establishment of the European EV battery industry. It opened for the first time battery industry in Sweden in 2021, and in that year they claim to make battery cells from 100% recycled nickel, manganese, and cobalt. Battery supply deals with BMW and Volvo, as well as a Canadian battery factory, soon followed.
But Northvolt has faced a few setbacks recently. In June BMW canceled its battery contract, worth an estimated $2 million, and in September Northvolt announced a strategic review and cost reductions, including halting active cathode production at its first plant. That plant never reached full production capacity, Reuters reported at the time.