Northvolt Brings in Crisis Expert

Cuberg could play a key role

Northvolt is making a significant leadership change at its Skellefteå factory. The move comes amid financial pressures and potential U.S. restructuring, with its subsidiary Cuberg possibly playing a role.

Peter Carlsson, co-founder and CEO, has stepped down as chair of Northvolt Ett, the subsidiary operating the flagship factory in Skellefteå, Sweden. The position has been handed to Paul O'Donnell, a seasoned expert in corporate turnarounds.

According to the Swedish financial newspaper Dagens Industri, this change may signal preparations for a Chapter 11 filing in the U.S., allowing the company to restructure its debts while continuing operations.

Lyten recently took over the lease for the Cuberg facility in San Leandro, but the subsidiary is still a legal entity.

In August, Cuberg, Northvolt’s U.S.-based subsidiary, ceased operations, but it remains an active legal entity. This status could provide Northvolt the necessary jurisdiction for a Chapter 11 process, as U.S. law requires some connection to the country, such as assets or subsidiaries, to qualify for the restructuring.

Paul O'Donnell, who previously worked for private equity giant Blackstone, has a history of navigating companies through financial crises. His past roles include Nordic Aviation Capital, where he joined the board shortly before it filed for chapter 11.

Northvolt, which has raised SEK 110 billion to establish itself as a leading European battery manufacturer, faces mounting challenges in securing additional funding.

Peter Carlsson, CEO and co-founder of Nortvolt, lived in Palo Alto until 2017, where he worked for Tesla in the company’s early years.