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 help operations for a couple of week, and that it had secured $100 million in financing to take it by the chapter course of, based on Reuters.
Rendering of Northvolt Six battery manufacturing facility 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 function. The corporate has reportedly began looking for a brand new CEO, and might be led by present CFO Pia Aaltonen-Forsell in the interim.
Volvo and Northvolt companion on battery improvement and manufacturing
Northvolt was the topic of excessive hopes for the institution of an area EV battery business for Europe. It opened its first battery manufacturing facility 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 facility, quickly adopted.
However Northvolt has confronted a number of setbacks lately. In June BMW cancelled its battery deal, estimated to be price about $2 billion, and in September Northvolt introduced a strategic evaluation and value cuts, together with suspension of cathode energetic materials manufacturing at its first manufacturing facility. That plant by no means attain full manufacturing capability, Reuters reported on the time.
