Swedish battery manufacturer Northvolt has filed for Chapter 11 bankruptcy protection in the US. According to the company, it has only about 30 million US dollars in cash, enough to keep it operating for about a week. The companyʼs debt is approximately 5.8 billion dollars. As part of the bankruptcy proceedings, Northvolt has secured financing totaling 245 million dollars.
Projects in Germany and Canada not affected
The company claims it needs an additional one billion to 1.2 billion dollars though to complete the restructuring process by the end of March 2025. In recent months, the company had scaled back its operations and reduced its workforce in order to stabilize its finances. The process affects the parent company and some subsidiaries. Battery projects in Germany and Canada are being financed separately and will continue outside of the Chapter 11 process.
Peter Carlsson Resigns as CEO
In parallel with the restructuring process, Peter Carlsson is stepping down as CEO of Northvolt. He will remain with the company as a board member and senior advisor. Pia Aaltonen-Forsell, Chief Financial Officer, and Cell Production Manager Matthias Arleth, who has been appointed Chief Operations Officer, will continue to manage the company. A search for a new CEO is currently underway.
Sources:
https://northvolt.com/articles/chapter11/
https://northvolt.com/articles/peter-carlsson-steps-aside/
https://www.reuters.com/technology/northvolt-crisis-may-be-make-or-break-europes-ev-battery-ambitions-2024-11-22/
