In a huge blow to Europe’s plan to set up its own battery industry to power electric cars, Peter Carlsson resigned as CEO of battery-maker Northvolt on Friday morning, shortly after the company filed for Chapter 11 bankruptcy protection in the U.S.
“The Chapter 11 filing allows a period during which the company can be reorganized, ramp up operations while honoring customer and supplier commitments, and ultimately position itself for the long-term,” Carlsson, a former Tesla executive who co-founded Northvolt in 2016, said in a statement.
He will stay on as a senior adviser and remain on the board.
The filing and the departure of its co-founder mark a swift reversal of fortunes for the company that was set to be Europe’s battery champion and chief competitor to the Chinese and other Asian companies that dominate the sector.
