Published by Global Banking and Finance Review
Posted on January 30, 2025
(Reuters) -Northvolt's co-founder Paolo Cerruti will step down from his role as chief executive officer of its North American division, the Swedish electric-vehicle battery maker said on Thursday.
Karen Chang — who has played a key role in the Quebec, Canada-based battery gigafactory, Six project — will serve as interim CEO in the transition period.
Cerruti will retain his role as chairman of the board of the Canadian entity, the statement said, adding that he will remain involved in the ongoing development of Northvolt Six.
This comes after CEO and co-founder Peter Carlsson stepped down in November just a day after the company filed for U.S. Chapter 11 bankruptcy.
Both founders worked together in supply chain and operations for Tesla in 2015 and founded the Swedish company in October 2016 with the goal of creating a sustainable battery industry in Europe.
In the bankruptcy filing, Northvolt said its Canadian and German operations were not part of the bankruptcy proceedings and that progress will continue. It initially said the Canadian plant would begin operations in 2026, though the company has since said it will take longer.
In November, Reuters reported that Canada is not planning to invest anymore after the federal and the Quebec provincial governments promised a contribution of $1 billion each for the first phase of the construction.
Earlier this week, the company sold its stake in its joint venture with Volvo Cars for an undisclosed sum and said it will explore potential collaborations in North America.
Northvolt has asked more than 100 shareholders at a meeting this month to provide $1.29 billion over the next two years to help restore its business.
(Reporting by Urvi Dugar; Editing by Alan Barona)
