Swedish battery agency Northvolt filed for U.S. Chapter 11 chapter safety Thursday, with CEO Peter Carlsson stepping down the next day.
Northvolt wants to lift between $1 billion and $1.2 billion to revive itself to full operations, Carlsson advised Reuters and different media Friday. On Thursday, the corporate mentioned it solely had sufficient money to assist operations for a few week, and that it had secured $100 million in financing to take it by the chapter course of, in line with 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 advised 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 trying to find a brand new CEO, and can be led by present CFO Pia Aaltonen-Forsell in the meanwhile.
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 yr 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 value about $2 billion, and in September Northvolt introduced a strategic evaluation and price cuts, together with suspension of cathode lively materials manufacturing at its first manufacturing facility. That plant by no means attain full manufacturing capability, Reuters reported on the time.
