Northvolt appoints new CFO

A few weeks ago, it became known that BMW had cancelled an order worth billions from Northvolt. The cells’ quality and delayed delivery time allegedly do not meet the carmaker’s requirements because cell production in Skellefteå, Sweden, is not operating reliably enough. The quantities are far below plan as the factory produces too many rejects. As a result, Northvolt CEO Peter Carlsson announced at the beginning of July that the international expansion plans would be reviewed – a task that the previous CFO, Alexander Hartman, is now taking on as Chief Transformation Officer.

Hartman’s successor, Pia Aaltonen-Forsell, will thus take on a challenging role in the first week of August. The experienced finance manager was most recently CFO of Outokumpu, a stainless steel manufacturer. Northvolt has also strengthened its team with the experienced developer Matthias Arleth as President Cells. Arleth comes from TE Connectivity but has also held management positions at Volkswagen and senior positions at Magna and Webasto.

According to recent media reports, Aaltonen-Forsell will first have to raise capital. As reported by German Manager Magazin last week, negotiations for a new financing round totalling around one billion euros are said to have become more difficult. Lower production volumes also mean that turnover is lagging behind, which is why investors are apparently hesitant. However, the capital requirement is there to get production up and running.

At a Supervisory Board meeting in mid-July, Board members reportedly discussed various scenarios were therefore reportedly discussed – from interim financing with a lower amount to a temporary halt to construction of the plants in Heide, Gothenburg and Canada (their future is part of the strategic review). The calculation: construction should only continue until there is more money again – generated in the Skellefteå factory, on which the full focus should now be placed.

There is no known resolution from this Supervisory Board meeting, but it appears that a decision to halt construction has yet to be made. That is because there are reports that work is continuing in Heide. “Northvolt has submitted an application to the State Office for the Environment to be able to start the pile foundation work for the first large production building as soon as possible,” a company spokesperson is quoted as saying. “We have repeatedly emphasised recently that we are firmly committed to the construction project in Heide and that work is progressing in the usual way.” The currently planned foundation work for the first production block is proof of this.

However, the result of the strategic review is still pending – although more than 500 people are already directly and indirectly involved in the planning of the factory in northern Germany. “The general conditions for the battery cell industry have become more challenging overall,” says the Northvolt spokesperson. “We are also dealing with this.”

northvolt.com (Northvolt team), manager-magazin.de (financing; in German), heise.de (Construction progress in Heide; in German )