Ex-Northvolt CEO Peter Carlsson secures funding for new AI manufacturing startup following company’s bankruptcy

Two months after Northvolt—once hailed as Europe’s answer to Tesla—filed for bankruptcy, two of its former top executives are back in the spotlight with a fresh bet on AI-powered manufacturing.

According to Bloomberg, Peter Carlsson, the company’s former CEO, and Siddharth Khullar, who led its AI efforts, have launched a new industrial software venture in Sweden. The startup, still unnamed and operating in stealth, is focused on using machine learning to help factories work smarter by streamlining production, predicting maintenance issues, and improving quality control.

“Two former executives from bankrupt battery maker Northvolt AB have launched a new venture in Sweden that will utilize artificial intelligence to help manufacturing processes,” Bloomberg reported.

The team is expected to grow to around 20 people, with Carlsson and Khullar developing a platform that plugs into existing systems to deliver operational improvements without the need for massive infrastructure changes.

Peter Carlsson Bounces Back with AI Startup Following Northvolt’s Collapse

Carlsson, who spent years building Northvolt into one of Europe’s most ambitious battery plays before it collapsed under $5.8 billion in debt, is drawing heavily from both his Northvolt experience and his time at Tesla, where he managed global supply chains.

Bloomberg added that Carlsson has taken a major stake in the new company. The funding round—while figures weren’t disclosed—has attracted notable VCs from both Europe and Silicon Valley, especially those focused on industrial tech.

The timing aligns with rising demand from manufacturers looking to cut costs and navigate volatile supply chains. This new venture is aiming to meet those needs—not with hardware, but with smarter, adaptive software.

While Northvolt’s bankruptcy looms in the background, sources close to the deal say Carlsson’s involvement was actually a key factor in getting investors on board. His name still carries weight, especially in hardware and production circles, and some see this move as a chance for redemption after Northvolt’s collapse.

Reuters adds that the new venture is developing tools that help predict equipment failures before they happen, fine-tune production schedules on the fly, and tighten up quality checks using real-time data. It’s a segment of the AI market that’s heating up fast, and Carlsson’s timing may work in his favor.

The Financial Times points out that while tech giants like Siemens and GE already offer similar industrial AI tools, Carlsson’s startup could carve out space by moving faster and being more focused. His network and execution track record might give the team an early advantage.

From a startup ecosystem angle, reports indicate that the Nordic region is starting to gain traction as a serious player in AI, and this new venture could add more fuel to that momentum. A recent post on X highlighted Carlsson’s stake and hinted that the startup could be one of the more closely watched newcomers in the industrial AI scene.

Carlsson’s move comes after Northvolt struggled to deliver on its ambitious promises. Once seen as Europe’s battery hope, the company faced years of delays, ballooning costs, and missed targets. Despite raising billions and securing high-profile partners like Volkswagen and BMW, it eventually crumbled under financial pressure. The bankruptcy put a spotlight on the risks of scaling capital-intensive startups in a volatile economy.

But this isn’t Carlsson’s first reinvention. And if the funding is any indication, it won’t be his last shot at building something that sticks.

With AI now reshaping how factories think and operate, Carlsson’s bet on smarter manufacturing feels like more than just a pivot. It’s a second act—and this time, he’s keeping it lean, data-driven, and focused on solving pain points factories deal with every day.

How far it’ll go depends on how fast the startup can deliver real results—and whether Carlsson’s past helps or haunts him.

According to Bloomberg, Northvolt’s struggles worsened as Germany’s auto sector faced increased pressure from low-cost Chinese EV imports over the past three years. The startup’s collapse is a significant blow to Europe’s plans to secure its battery supply chain. Northvolt once operated under the slogan “make oil history.”

Founded in 2016 by former Tesla executive Peter Carlsson and former Airbus manager Paolo Cerruti, Northvolt gained attention for its lithium-ion batteries for EVs and energy storage. The company built partnerships with Volkswagen, BMW, and ABB, aiming to deliver sustainable, high-quality batteries for Europe’s green energy future. But delays and escalating costs led to its financial unraveling.