Northvolt Faces Bankruptcy Amid Leadership Change and Restructuring Efforts

Northvolt's CEO, Peter Carlsson, steps down as the company seeks to raise up to $1.2 billion following Chapter 11 bankruptcy filing. The battery maker faces production challenges and financial strain, impacting its plans to expand in Germany and Canada. Leadership transitions are underway amidst restructuring efforts.

Northvolt's CEO, Peter Carlsson, has announced his resignation just a day after the Swedish battery maker filed for U.S. Chapter 11 bankruptcy. Once seen as Europe's leading electric-vehicle battery hope, Northvolt now struggles with production setbacks and financial difficulties.

The company urgently needs to secure up to $1.2 billion to stabilize its operations. The Chapter 11 filing permits reorganization while maintaining customer and supplier agreements, according to Carlsson, who remains on the board as a senior adviser.

Leadership shifts are pending, with CFO Pia Aaltonen-Forsell and president Matthias Arleth at the helm. Northvolt is actively seeking partners for restructuring, with a deadline for proposals set for early December, while also preparing for potential liquidation if necessary.

(With inputs from agencies.)