Thousands of jobs threatened by Northvolt's bankruptcy

Thousands of employees are affected by Northvolt's bankruptcy, Sweden's largest in modern times. I am very sad. It hurts all over my body, says the former CEO Peter Carlsson.

» Published: March 12 2025

Thousands of jobs threatened by Northvolt's bankruptcy
Photo: Henrik Montgomery/TT

After several months of trying to bring in new capital to the company and a so-called Chapter 11 process in the USA, there was no other alternative, according to the company's interim chairman Tom Johnstone:

It is really with a heavy heart that we have applied for bankruptcy today. This was not an easy decision to make, he says at a press conference.

Also present at the press conference was the former CEO Peter Carlsson, who resigned in connection with the corporate reconstruction in the USA.

We have worked for the past year to find different financing solutions and have been close several times, but unfortunately, we did not quite make it, he says.

The Face Outwards

Carlsson has largely been the face outwards for Northvolt's expansive venture. Five years ago, he stood at a press conference in Stockholm and announced that 10,000 new jobs would be created thanks to the company, including in Skellefteå.

Now, it is instead nearly 5,000 jobs that are being lost. Many of the employees received the news through the media before the company had a chance to inform them.

In a comment, the Unionen club writes that it is a dark day in Skellefteå and the Swedish Engineers call the news "devastating".

Now, the business is instead being handed over to a bankruptcy trustee, who is appointed by the Stockholm District Court. This will now lead the work of selling off Northvolt's assets and operations to get money for the creditors in the bankruptcy.

Drive On

According to Johnstone, however, there is a possibility to drive on Northvolt's operations with new owners and thereby save some of the jobs that are at risk of disappearing.

I hope this is not the last chapter, says Peter Carlsson.

Johnstone says that many production problems have been addressed and the outflow of money has been slowed down. There have also been talks with both industrial and financial partners about new capital during the Chapter 11 process.

But I cannot promise anything. It is up to the bankruptcy trustee, says Johnstone.

In recent times, Peter Carlsson has been noticed for his share sales in the company, which have generated around 200 million kronor in profit for his part.

When asked how he feels about having been one of the few people who have actually made money on the company when so many others have lost both jobs and investments, the answer was brief:

Today, I do not want to comment on this, it is an incredibly stupid question.

The Swedish battery manufacturer Northvolt, which currently has nearly 5,000 employees, sold its first battery in 2022 and then said it was aiming for a stock exchange listing with a valuation of around 200 billion kronor.

But after a series of production problems, the winds turned clearly last year. In the summer of 2024, they lost a large order from BMW, and during the autumn, the loss-making company made drastic personnel cuts and project closures to get the economy in order.

In November, Northvolt applied for bankruptcy protection in a court in Texas, USA, with the aim of restructuring the debt mountain of 60 billion and getting new capital in the first quarter of this year.

On Wednesday, the company applied for bankruptcy in the Stockholm District Court.

The bankruptcy application concerns the units Northvolt AB, Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB, and Northvolt Systems AB.

Tags

TTT
By TT - Translated and adapted by Sweden Herald under license from TT

More news

Polestar Shifts to Local Production
3 MIN READ

Polestar Shifts to Local Production to Navigate Trade Challenges

Hermès Surpasses LVMH as France's
1 MIN READ

Hermès Surpasses LVMH as France's Top Valued Luxury Brand

German Investor Confidence Plummets as
1 MIN READ

German Investor Confidence Plummets as Tariffs Threaten Recovery

Ericsson CEO Explains Dropping 'Diversity'
2 MIN READ

Ericsson CEO Explains Dropping 'Diversity' from Reports

Freight Volumes Drop 9.7% in
1 MIN READ

Freight Volumes Drop 9.7% in Chinese Ports as Trade Tensions Rise

Economists Critique Spring Budget as
2 MIN READ

Economists Critique Spring Budget as Outdated Amid Tariff Challenges

Government Cautions on Economic Risks
3 MIN READ

Government Cautions on Economic Risks and Uncertain Recovery

Avanza Posts Record Profit Despite
1 MIN READ

Avanza Posts Record Profit Despite Stock Market Volatility

Scandic Hotels Anticipates Strong Summer
1 MIN READ

Scandic Hotels Anticipates Strong Summer Demand

Spring Budget Offers Limited Relief
3 MIN READ

Spring Budget Offers Limited Relief for Household Finances

Ericsson Leads Stockholm Stock Exchange
1 MIN READ

Ericsson Leads Stockholm Stock Exchange Gains with 6% Rise

Spring Budget Allocates 11.5 Billion
1 MIN READ

Spring Budget Allocates 11.5 Billion Kronor for Key Investments

Spring Budget Faces Uncertainty Amid
3 MIN READ

Spring Budget Faces Uncertainty Amid Global Economic Concerns

Japanese Car Giants Boost Asian
1 MIN READ

Japanese Car Giants Boost Asian Stock Markets After Tariff Pause News

Inflation and Unemployment Concerns Rise
1 MIN READ

Inflation and Unemployment Concerns Rise Among U.S. Households

US Probes Tariffs on Medicine
1 MIN READ

US Probes Tariffs on Medicine and Semiconductor Imports

Fed's Waller: Inflation from Tariffs
1 MIN READ

Fed's Waller: Inflation from Tariffs Expected to Be Temporary

Nvidia to Begin AI Supercomputer
1 MIN READ

Nvidia to Begin AI Supercomputer Production in the USA

IMF Urges Larger Financial Buffers
2 MIN READ

IMF Urges Larger Financial Buffers in Response to Tariff Shock

Wall Street Closes Higher as
2 MIN READ

Wall Street Closes Higher as Tech Stocks Lead Gains

Liseberg Faces Strike Threat Over
1 MIN READ

Liseberg Faces Strike Threat Over Part-Time Overtime Pay Dispute

Goldman Sachs Thrives in Q1
1 MIN READ

Goldman Sachs Thrives in Q1 Despite Market Turbulence

Government Boosts Electric Car Scrappage
2 MIN READ

Government Boosts Electric Car Scrappage Premium to 25,000 Kronor

China's Gold Trade Surges as
1 MIN READ

China's Gold Trade Surges as US-China Tensions Rise

Swedish Exporters Face Uncertainty Amid
3 MIN READ

Swedish Exporters Face Uncertainty Amid Trump's Tariff Impact

Crown Nears Three-Year High Against
1 MIN READ

Crown Nears Three-Year High Against Dollar as Trade Tensions Rise

PlayStation 5 Price Rises 25%
1 MIN READ

PlayStation 5 Price Rises 25% in Europe Due to Economic Challenges

Inflation Expectations Surge to 2.3%
1 MIN READ

Inflation Expectations Surge to 2.3% in Sweden, Survey Shows

Stockholm Stocks Surge as OMXS
1 MIN READ

Stockholm Stocks Surge as OMXS Index Climbs 2.8%

Fewer Households Expect Rising Housing
1 MIN READ

Fewer Households Expect Rising Housing Prices, SEB Report Shows

E-commerce Drives March Surge in
1 MIN READ

E-commerce Drives March Surge in Clothing and Shoe Sales

China's Exports Surge 12.4% in
1 MIN READ

China's Exports Surge 12.4% in March, Surpassing Expectations

Xi Urges Vietnam to Unite
1 MIN READ

Xi Urges Vietnam to Unite Against US Trade Tactics

China's Trade Shift May Pressure
2 MIN READ

China's Trade Shift May Pressure European Markets with Low-Cost Goods

Trump to Announce New Tariffs
2 MIN READ

Trump to Announce New Tariffs on Semiconductors and Electronics

Asian Markets Rise Following US
2 MIN READ

Asian Markets Rise Following US Tariff Exemptions on Electronics