Northvolt files for Chapter 11 bankruptcy protection in United States and plans restructuring in Sweden

Last Thursday, Northvolt announced its intention to file for Chapter 11 bankruptcy protection in the United States, with plans to unlock approximately 2.7 billion SEK. Reports suggest the company may also pursue a restructuring process in Sweden within a month or two, according to Peter Carlsson.

In the fall, Northvolt claimed to have achieved a “record production” of 60,000 battery cells per week. However, this figure falls drastically short of Carlsson’s 2017 promise of up to 3,500 battery cells produced per minute, equating to around 35 million batteries weekly. When pressed about the discrepancies, Carlsson noted that the 2017 predictions referred to a different type of battery cell than what is currently being manufactured.

Today, Northvolt faces significant debts, and when asked about the company’s shortcomings, Carlsson admitted they underestimated the complexity involved in establishing such a large factory, recruiting substantial new staff, and working with unfamiliar equipment. He remarked that Northvolt was among the first major clients in Europe for some Asian suppliers, thus lacking adequate service structures.

Carlsson also emphasized the challenges in battery production, highlighting that crafting a battery involves over 200 process steps, each requiring sophisticated methods to achieve high-quality results. Reflecting on past decisions, he confessed the company should have taken a step back when production issues arose in Skellefteå.

In addition, Carlsson addressed recent concerns regarding multiple workplace accidents and his own financial gains from Northvolt, as well as his absence from interviews.