Northvolt CEO Steps Down Amid Bankruptcy Filing

Peter Carlsson, CEO of Swedish EV battery maker Northvolt, has resigned a day after the company filed for Chapter 11 bankruptcy protection in the U.S., Reuters’ Stine Jacobsen reported.

Carlsson will remain on the board and serve as a senior adviser while the company searches for his replacement. I Photo: Stockholm School of Economics / Northvolt Facebook

Northvolt’s bankruptcy filing underscores financial challenges that threaten Europe’s ambition to reduce dependency on Chinese battery manufacturers. The company cited a lack of cash reserves, stating it could only sustain operations for a week without securing additional funding.

Northvolt announced $100 million in new financing to continue operations during the restructuring process, which it expects to complete by Q1 2025.

Carlsson will remain on the board and serve as a senior adviser while the company searches for his replacement.

Despite the bankruptcy, Northvolt plans to honor commitments to customers and suppliers, aiming to reposition itself for long-term viability. The company employs 6,600 staff across seven countries.