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Teneo is serving as communications and restructuring advisor for Northvolt as Europe’s electric vehicle battery champion declares Chapter 11.
The filing is a major blow to the efforts by Western automakers to reduce their reliance on Chinese EV battery makers, according to Reuters.
Northvolt says bankruptcy protection will enable it to restructure debt, scale its business to meet customer demands, and secure a sustainable future.
Tom Johnstone, interim chair, said Chapter 11 “will allow Northvolt to continue its mission to establish a homegrown, European industrial base for battery production.”
He took over for Peter Carlsson, the former Tesla executive who launched Northvolt in 2016. Carlsson took responsiblity for Northvolt's financial collapse under a heavy debt load.
A financially reorganized company will “establish a resilient base of operations and a competitive platform for innovation and long-term growth that will advance our work to build a more sustainable society,” added Johnstone.
Northvolt, which expects to emerge from bankruptcy during Q1 2025, is also using the process to look for strategic or financial partners.
It made the Chapter 11 filing in US Bankruptcy Court for the Southern District of Texas, which is in Houston.
Northvolt has operations in California.
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