STOCKHOLM — Sweden's financially-strained electric car battery maker Northvolt announced recently the resignation of its CEO Peter Carlsson, hours after the company sought bankruptcy protection in the US while it reorganises its business.
Carlsson, who co-founded Northvolt and has led it since its inception in 2016, will "step aside from his role as CEO", the company said in a statement, adding that the search for a new chief executive was under way.
Northvolt announced late Thursday that it had applied for Chapter 11 bankruptcy protection in the United States to enable it to restructure its debt and reorganise its business.
The filing gave it access to "approximately $145 million in cash collateral", it said, while Swedish truckmaker Scania, a customer, pledged $100 million in new financing.
Swedish media reported the company had debts of $5.84 billion and just $30 million in available cash.
Northvolt said its operations would continue as normal during the reorganisation.
The company said in September it was slashing 1,600 jobs — a quarter of its staff — and suspending the expansion of its site as it struggled with strained finances and a slowdown in demand.
Northvolt has been seen as a cornerstone of European attempts to catch up with China and the United States in the production of battery cells, a crucial component of lower-emission cars.
Europe accounts for just three percent of global battery cell production, but has set its sights on 25 per cent of the market by the end of the decade.
The battery maker has also been plagued by production delays, which in May led car manufacturer BMW to drop an order worth 2 billion euros ($2.2 billion).
