Mark Duchesne, the CEO of Northvolt Ett, has stepped down from his position at the Swedish battery manufacturer, signaling troubling times for the company.
Announced Bankruptcy Procedures
Northvolt, hailed as Europe’s hope for reducing dependence on Chinese batteries, is now grappling with substantial setbacks in its operations.
Duchesne, who joined Northvolt in the summer of 2023 after stints at Toyota and Tesla, described his time at the company as “the worst quarter of my career.”
He faced challenges that exceeded the expectations set by the company’s founder, Peter Carlsson, according to Hotnews.
His resignation comes amid Northvolt’s announcement of bankruptcy procedures for Northvolt Ett Expansion AB, the entity overseeing the factory’s development.
Lay off 20% of Workforce
Earlier this month, operations at Upstream 1, the facility responsible for producing cathodes, were suspended due to failure to meet required quality levels. This setback has hindered the battery assembly line, which is currently producing only a fraction of the output needed for profitability.
Additionally, Northvolt announced plans to lay off 1,600 employees, which amounts to 20% of its workforce. Ironically, the gigafactory in Skellefteå, meant to reduce Europe's reliance on Chinese batteries, has become dependent on Chinese technology.
The company has encountered serious technical problems with equipment supplied by its partner, Wuxi Lead, which frequently malfunctions. More than 500 Chinese workers have been brought in to operate and fix the equipment, necessitating translation assistance to understand the machinery's operation.
As Northvolt seeks to stabilize its finances, it is attempting to sell its stock of battery manufacturing materials, including nickel sulfate and lithium hydroxide, which have become surplus due to halted production.
