Northvolt’s co-founder Paolo Cerruti will step down as CEO of its North American division, the Swedish EV battery maker announced on January 30.

He will remain chairman of the board of the Canadian entity and remain involved in the development of Northvolt Six.

During this transition, Karen Chang, who has been with the company for six years, will become interim CEO. A trained lawyer, she previously worked for Bombardier in Sweden. Northvolt said she had played a key role in navigating the complexities of its Six project in Quebec and was well-positioned to lead the team during this period. 

She will work with Jose Diaz, who becomes interim COO.

This latest announcement comes after CEO and co-founder Peter Carlsson stepped down in November just a day after the company filed for US Chapter 11 bankruptcy.

Cerruti, while stepping away from daily executive responsibilities, will continue to support the company’s growth from a strategic standpoint, serving as a vital link to key stakeholders, the firm said.