Northvolt AB Chief Executive Officer Peter Carlsson is stepping down as the Swedish battery maker embarks on a restructuring under bankruptcy court protection.Most Read from BloombergNYC's Underground Steam System May Be Key to a Greener FutureTrump Promises Could Have Seismic Impact on Washington EconomyNYC Gets Historic Push for 80,

In a huge blow to Europe’s plan to set up its own battery industry to power electric cars, Peter Carlsson resigned as CEO of battery-maker Northvolt on Friday morning, shortly after the company filed for Chapter 11 bankruptcy protection in the U.S.

The Swedish battery maker said Carlsson will become a senior adviser as the company enters U.S. bankruptcy and initiates a debt restructuring. The search for a new chief executive is underway.