Northvolt CEO steps down following bankruptcy filing 

Peter Carlsson has resigned as CEO of Swedish battery maker Northvolt, one day after the business filed for Chapter 11 bankruptcy protection in the United States. Carlsson has led the company since he co-founded it in 2016.  

Northvolt announced it had voluntarily filed for Chapter 11 reorganization in the United States on Nov. 21, 2024. A US chapter 11 filing is often referred to as a reorganization bankruptcy and can allow the business to continue operating, and in some cases borrow more funds. Northvolt has said filing Chapter 11 will allow it to restructure debt and “appropriately scale the business.”  

In a statement, Northvolt said it will seek new sources of funding, including approximately $145 million in cash collateral. One of the company’s existing customers has committed to providing $100 million in new financing to support Northvolt’s business operations in the form of debtor-in-possession financing, according to the battery maker. 

Northvolt added it would continue to make deliveries to customers, fulfill obligations to vendors and pay staff wages.

The decision follows a series of setbacks for Europe’s leading battery manufacturer, including BMW’s cancellation of a $2 billion EV battery order. In September 2024, Northvolt embarked on a strategic review of its operations announcing it would scrap a planned gigafactory in Poland, sell its facility in Kvarnsveden, Sweden, pause operations at its Northvolt Ett Upstream 1 cathode active material production facility, and resize the company’s workforce.  

Following his resignation from the CEO role, Carlsson will take on a senior advisor role and remain a member of the company’s board, according to Northvolt.  The company’s leadership team will consist of Pua Aaltonen-Forsell, chief financial officer, and Matthias Arleth, president of cells, who will take on the role of chief operations officer. They are expected to lead Northvolt with support from Chief Restructuring Officer Scott Millar. The search for a new CEO has already begun, Northvolt said.  

Carlsson’s resignation marks a “significant new phase” for Northvolt, according to the outgoing CEO. In a statement, Carlsson said the Chapter 11 filing allows the company to reorganize and ramp up operations “while honoring customer and supplier commitments, and ultimately position itself for the long-term.” 

“That makes it a good time for me to hand over to the next generation of leaders,” he said.  

Northvolt interim chair Tom Johnstone thanked Carlsson for his “vision and dedication to building Northvolt.” 

“Peter’s perspective will continue to benefit Northvolt, as a Senior Advisor and Member of the Board, while the new leadership will steer the company into the next stage,” he said.