Battery maker Northvolt said filing for bankruptcy proceedings allowed it to begin a new phase and restructure its business while continuing to fundraise and secure its long-term future.
The Swedish company, which has been working with Scania to develop a lithium-ion cell for heavy electric vehicles to travel more than one million kilometres with the same battery pack, filed for Chapter 11 reorganisation in the United States in November.
Northvolt co-founder and chief executive Peter Carlsson stepped aside the following day, although he remains a member of the board.
Its first meeting of creditors is scheduled to take place later this month.
Carlsson said: “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.
“That makes it a good time for me to hand over to the next generation of leaders.”
The manufacturer was seen as Europe’s great hope against increasing domination by Asian companies on battery production, but despite significant financial and commercial backing it has struggled to increase production amid a global dip in demand for electric vehicles.
In Spring 2023, Northvolt and Scania said it would commence assembly of their new cell for the start of production of the truck manufacturer’s heavy-duty e-trucks later that year.
Scania Group was not immediately available for comment.
