Northvolt's Strategic Shift: CEO Steps Down Amid Bankruptcy Filing

Northvolt's CEO Peter Carlsson is resigning following the company's Chapter 11 bankruptcy filing in the U.S. The filing aims to facilitate the firm's restructuring to continue operations and reduce reliance on Chinese battery makers. Carlsson remains as an advisor while the search for a new CEO begins.

Northvolt, the Swedish battery cell manufacturer, announced on Friday that its CEO, Peter Carlsson, is stepping down. This decision comes a day after the company filed for Chapter 11 bankruptcy protection in the United States. Northvolt aims to reorganize and strengthen its operations during this time.

The Chapter 11 filing is designed to give Northvolt the opportunity to restructure while maintaining commitments to customers and suppliers. The company seeks to position itself for long-term success amid challenges in the battery production sector, competing with foreign manufacturers.

Despite current financial constraints, Northvolt has managed to secure $100 million in new financing to support operations through the bankruptcy process. The company, which employs approximately 6,600 staff across seven countries, expects the restructuring to be completed by the first quarter of 2025. Carlsson will assume a new role as senior adviser and remain on the board as the company launches a search for a new CEO.

(With inputs from agencies.)