Northvolt: CEO Paolo Cerruti steps down

Northvolt co-founder Paolo Cerruti steps down as President and CEO of Northvolt North America. Photo taken in Montreal on April 3, 2024. (The Canadian Press/Ryan Remiorz)

Northvolt co-founder Paolo Cerruti is stepping down as President and CEO of Northvolt North America.

Cerruti will continue to play a strategic role in the Swedish company, which plans to build a battery factory in the Montérégie region, the company announced in a press release on Thursday. He will retain his position as Chairman of the Canadian division and continue to live in Montreal.

“As Chairman, I will continue to work closely with the team to ensure the success of the project,” he said.

Karen Chang will serve as interim leader. A trained lawyer, she has been with Northvolt for six years, according to her LinkedIn profile. She previously worked for Bombardier in Sweden.

The news comes as Northvolt finds itself in a precarious position. Its parent company has sought creditor protection, and the company is trying to secure US$ 1.3 billion in financing for the next two years, according to Reuters.

The U.S. subsidiary is not bankrupt. Construction of the plant is on hold because of the winter season.

Quebec and Ottawa have committed to investing $2.4 billion in the $7 billion project.

Questioned on the subject, Quebec Premier François Legault stressed that he still believed in the future of the project. He pointed out that Volvo would be a customer of the Quebec plant, as reported by La Presse earlier this week.

“I’m convinced that Americans, and indeed the whole planet, want us to fight climate change for generations to come,” he said at a press conference in Sept-Îles. “And that means, among other things, electric vehicles, so I still believe in that.”

He acknowledged that the election of Donald Trump in the United States was unfavourable for the electric car sector but stressed that his mandate was only for four years.

“In the medium term, I continue to be a great supporter of electric vehicles and the battery sector. And we are lucky in Quebec to have lithium, to have clean energy, to be able to manufacture some of these electric vehicles there,” he added.

This report by The Canadian Press was first published in French on Jan. 30, 2025.