Difficulties continue for Northvolt, as head of Europe’s first lithium-ion gigafactory steps down with immediate effect
Swedish battery manufacturing venture Northvolt has replaced the CEO of Northvolt Ett gigafactory, in the latest development at the cash-strapped firm.
CNBC reported on a company statement that Mark Duchesne, the CEO of Northvolt Ett since mid 2023, is to be replaced on an interim basis by Angéline J. Bilodeau, the firm’s vice president of operations in North America.
Northvolt Ett is Europe’s first homegrown gigafactory for lithium-ion battery cells, and the executive shakeup comes with the company facing a number of challenges.
Gigafactory boss
Duchesne is reportedly stepping down with immediate effect and the interim position of Bilodeau will be held until the end of the year, as the company seeks to secure a permanent replacement.
Northvolt was set up as part of an EU effort to reduce the region’s dependence on Asian producers for batteries for electric vehicles (EVs) and power storage.
The EU in 2019 had approved a 3.2bn euro subsidy from seven member states, led by Germany and France, into the battery industry plan.
The project, of which Northvolt is a key part, launched in 2017.
Just before Christmas 2021, Northvolt reached a deal with Portuguese oil firm Galp to build what was intended to be Europe’s largest integrated lithium conversion plant in Portugal.
Also in December 2021, Northvolt confirmed that its gigafactory in Skellefteå, a former gold mining town about 200 km south of the Arctic Circle, had assembled the first battery cell.
Northvolt difficulties
But Northvolt is currently facing a number of challenges and difficulties, as the Northvolt Et gigafactory (built to serve the European car industry’s transition to electric vehicles), reportedly struggles with ‘persistent production problems’.
Those production problems, coupled with sluggish demand for electric vehicles and competition from China, have reportedly impacted Northvolt’s financials.
In September after a strategic review and as part of a cost cutting exercise, the firm announced plans to cut 25 percent of its workforce, with 1,600 Northvolt employees being let go, split across Skellefteå (1,000 positions), Västerås (400 positions) and Stockholm (200 positions).
Earlier this week the subsidiary company managing Northvolt’s Ett expansion project filed for bankruptcy, after the factory expansion it was developing was cancelled.
It has been reported that Northvolt continues to seek a cash infusion from investors and lenders.
