Northvolt chair Snabe not likely to return after sick leave, Borsen report says

COPENHAGEN (Reuters) - Northvolt Chair Jim Hagemann Snabe, on sick leave since the beginning of the year, does not anticipate returning to his role at the Swedish lithium-ion battery manufacturer, he told Danish business daily Borsen on Friday.

The company, which has raised billions of dollars and is mulling an initial public offering, faces a slowdown in demand for electric vehicles, due to factors such as high energy costs and rising raw material prices.

Last week, the company said it was reviewing plans to build a second Swedish gigafactory while German premium carmaker BMW separately said it had cancelled a 2 billion euros ($2.15 billion) order for battery cells with the company.

"It doesn't make much sense for Northvolt that I'm coming back now after so many months without being active," Snabe told Borsen.

Northvolt did not immediately respond to a request for comment.

The board has been led by British national Tom Johnstone since early 2024, a veteran business executive who has previously been CEO of several Nordic industrial companies.

Snabe told Borsen the reason for his sick leave was a near-fatal accident in January during a swim in the ocean, where he injured his shin on a submerged metal step.

Despite receiving immediate medical care, a multiresistant bacterial infection from polluted seawater rapidly worsened, leading to severe complications and multiple surgeries, he told the paper.

Reuters was not able to reach Snabe for comment.

(Reporting by Stine Jacobsen. Editing by Jane Merriman)