Swedish battery agency Northvolt filed for U.S. Chapter 11 chapter safety Thursday, with CEO Peter Carlsson stepping down the next day.
Northvolt must elevate between $1 billion and $1.2 billion to revive itself to full operations, Carlsson informed Reuters and different media Friday. On Thursday, the corporate mentioned it solely had sufficient money to assist operations for a couple of week, and that it had secured $100 million in financing to take it by way of the chapter course of, in keeping with Reuters.
Rendering of Northvolt Six battery manufacturing unit in Quebec, Canada
In its Chapter 11 submitting, Northvolt mentioned it anticipated to finish the restructuring required by the chapter course of by the primary quarter of 2025. Carlsson informed reporters that the chapter course of will give the corporate time to reorganize itself and ramp up operations, whereas honoring buyer and provider commitments.
Carlsson will stay on the corporate’s board and can tackle a brand new senior advisor position. The corporate has reportedly began looking for a brand new CEO, and will likely be led by present CFO Pia Aaltonen-Forsell in the meanwhile.
Volvo and Northvolt accomplice on battery improvement and manufacturing
Northvolt was the topic of excessive hopes for the established of a neighborhood EV battery trade for Europe. It opened its first battery manufacturing unit in Sweden in 2021, and that 12 months claimed to be making battery cells with 100% recycled nickel, manganese, and cobalt. Battery-supply offers with BMW and Volvo, in addition to for a Canadian battery manufacturing unit, quickly adopted.
However Northvolt has confronted a number of setbacks just lately. In June BMW cancelled its battery deal, estimated to be price about $2 billion, and in September Northvolt introduced a strategic assessment and value cuts, together with suspension of cathode lively materials manufacturing at its first manufacturing unit. That plant by no means attain full manufacturing capability, Reuters reported on the time.