Abstract

The case narrates the journey of Swedish battery manufacturer Northvolt from when it was one of the leading producers of electric vehicle (EV) batteries in Europe to its filing for bankruptcy. Founded in 2016, the company emerged as a tough competitor to Asian battery manufacturers dominating the European market. With billions of dollars in funding, strong support from the Swedish government, and significant partnerships with automotive manufacturers, Northvolt rapidly grew to become a well-funded and significant battery manufacturer. However, the company’s overly ambitious expansion goals, lack of focus, serious production and quality issues, order cancellations, and stiff competition led to severe cash flow problems over the years and to loss of investor confidence. In 2024, Northvolt voluntarily filed for Chapter 11 bankruptcy protection in the U.S Bankruptcy Court for Texas. With setbacks caused by both internal and external factors, Northvolt found itself in a dilemma between restructuring quickly and risking liquidation. With it having filed for Chapter 11 bankruptcy and stakeholders maintaining a close watch, it remained to be seen whether Peter Carlsson, CEO of Northvolt, would be able to steer the company through such turbulent times. What strategies can Northvolt use to make a comeback?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine how strategic misalignment contributes to an organization’s downfall.
• Determine the contribution of leadership to the growth and decline of an organization.
• Design a strategic revival plan for organizations with bankruptcy or financial distress contingencies.

Keywords

Battery Maker; Business Strategy; Leadership; Sustainable Energy; Overexpansion; Operational Delays; Bankruptcy; Restructuring,Northvolt; Peter Carlsson; Battery Industry; Sustainability; Business Strategy; Leadership; Overexpansion; Downfall;; Bankruptcy; Restructuring;