Image: © Timon/Stock.adobe.com
The company’s CEO, Peter Carlsson, also announced that he is stepping down from his role.
Northvolt, an electric vehicle (EV) battery-maker based in Sweden, announced yesterday (21 November) that it is filing for US Chapter 11 bankruptcy. The voluntary reorganisation means that Northvolt can access approximately $245m in financing.
The company’s CEO, Peter Carlsson, announced today (22 November) that he is stepping down from his role. Carlsson, who is also a founder of Northvolt and has led the company for eight years, will remain on the board and as a senior adviser.
Northvolt, which was founded by former Tesla executives and specialises in lithium-ion technology for EVs, said it will continue to operate as usual during the reorganisation of its financial obligations.
The bankruptcy notice, which was filed in the US Bankruptcy Court for the Southern District of Texas, is the most recent negative development for Northvolt. Back in September, the company laid off 25pc of its Swedish employees.
Along with the layoffs, the company announced further “rescoping” measures, which included suspending its expansion project in Northvolt Ett in Skellefteå, Europe’s first homegrown battery gigafactory.
The measures were to “ensure that [the company’s] resources are focused on accelerating production in large-scale cell manufacturing at Northvolt Ett,” the company said at the time. Early this year, it bagged a $5bn green loan to expand the site in northern Sweden.
Ett gigafactory remains open
Northvolt said the bankruptcy filings will help it to “implement the decisions made as part of its strategic review to rescope the business and prioritise commitments to customers”.
Northvolt Ett in Skellefteå and Northvolt Labs in Västerås will remain operational, the company said, as it ramps up production to meet commitments to its customers, while “fulfilling obligations to critical vendors and payment of wages to employees”.
Northvolt said the Chapter 11 restructuring process in the US is distinct from a bankruptcy or administration proceeding in Sweden or many other countries. “This process will allow Northvolt to access new sources of funding, including approximately $145m in cash collateral,” the company said.
Interim chair of the company’s board, Tom Johnstone, also had this to say: “Despite near-term challenges, this action to strengthen our capital structure will allow us to capture the continued market demand for vehicle electrification.
“We are likewise pleased by the strong support we have received from our existing lenders and our customers.”
Northvolt said it may take legal actions in other jurisdictions to facilitate the US Chapter 11 proceedings, which include entities in Sweden, the US and Poland.
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