Northvolt’s chief executive has resigned following news the Swedish-based battery start-up had filed for bankruptcy.
Peter Carlsson’s departure after eight years at the helm was announced on Friday, hot on the heels of Thursday’s news it had filed for Chapter 11 in the US.
Northvolt said Thursday that a voluntary Chapter 11 filing had been made in a Texas bankruptcy court, marking a blow to European ambitions to bolster domestic electric vehicle part production.
“By enabling the company to restructure its debt, appropriately scale the business [...] and secure a sustainable foundation for continued operation [this] will help Northvolt to implement the decisions made as part of its strategic review,” a statement said.
Northvolt added operations would continue as normal, including at its flagship gigafactory in Skellefteå, Sweden, before an anticipated exit from bankruptcy early next year.
Funding worth $145 million (£115 million) would become available as a result of the move, it said, while customer Scancia had committed to $100 million in new financing.
“This decisive step will allow Northvolt to continue its mission to establish a homegrown, European industrial base for battery production,” interim chairman Tom Johnstone commented.
“Despite near-term challenges, this action to strengthen our capital structure will allow us to capture the continued market demand for vehicle electrification.”