By Stine Jacobsen
COPENHAGEN (Reuters) -Northvolt’s CEO and co-founder Peter Carlsson is stepping down, the Swedish maker of battery cells for electric vehicles said on Friday, one day after the group filed for U.S. Chapter 11 bankruptcy protection.
Northvolt in a matter of months this year went from being Europe’s best shot at a home-grown electric-vehicle battery champion to racing to stay afloat, hobbled by production problems and as funding ran out.
It now needs to raise between $1 billion and $1.2 billion in order to restore its business, Carlsson told reporters.
“The Chapter 11 filing allows a period during which the company can be reorganised, ramp up operations while honouring customer and supplier commitments, and ultimately position itself for the long-term,” the outgoing CEO said.
Carlsson co-founded the company and is a former Tesla (NASDAQ:TSLA) executive.
The lithium-ion battery maker on Thursday said it only had cash to support operations for about a week and that it had secured $100 million in new financing for the bankruptcy process, allowing operations to continue.
Northvolt, which employs around 6,600 staff across seven countries, in its Chapter 11 filing said it expects to complete the restructuring by the first quarter of 2025.
Carlsson will take on a role as senior adviser and remain a member of the board, the company said, adding that the search for a new CEO has started.
In the meantime, the company will be led by Chief Financial Officer Pia Aaltonen-Forsell and its president of battery cells, Matthias Arleth, who takes up a new role as chief operations officer.
On Monday, Reuters reported that Northvolt had missed some in-house targets and curtailed production at its battery-cell plant in northern Sweden, underscoring the challenge of ramping up output.
Northvolt on Thursday said it is conducting a search for one or more partners to finance its restructuring and return the company to long-term sustainability, including the completion of major battery plants in Germany and Canada.
“Any and all interested parties, regardless of their desired transaction type, are encouraged to contact Rothschild as soon as possible and submit proposals by early December,” Northvolt said in its Chapter 11 filing at a Texas court.
Failing this, Northvolt said it has also engaged financial services company Hilco Global to assist with “an orderly liquidation process if necessary”.
While the path forward remains uncertain, the company stands ready to engage with all interested parties, it said in the Chapter 11 filing document.
“Northvolt trusts that it can build on its billions of dollars of investment and groundbreaking facilities and technology to achieve a value-maximising recapitalisation or sale in Chapter 11,” it said.