Less than a year after the collapse of Northvolt, one of Europe’s most ambitious battery ventures, its former CEO Peter Carlsson is back building again. But this time, the challenge has been as emotional as it has been technical.
Carlsson, who co-founded and led Northvolt before the company filed for bankruptcy with debts of $5.8 billion, has launched a new startup called Aris Machina, focused on using artificial intelligence to improve industrial manufacturing processes. While the venture has already attracted angel investors and backing from Earlybird and Village Global, Carlsson admits the fundraising journey was far from straightforward.
Raising Capital After a High Profile Failure
Speaking openly about the experience, Carlsson described raising funds after Northvolt’s collapse as emotionally difficult. He said feelings of guilt toward investors and stakeholders who lost significant sums weighed heavily during early conversations.
He emphasised that Northvolt was never a traditional venture capital story. The company was initially built on large scale industrial investment and later supported by major financial institutions, rather than following a classic VC growth path. That distinction, however, did little to soften the emotional toll of the company’s downfall.
Despite this, Carlsson said there has been strong curiosity around Aris Machina, both from investors and from potential customers trying to understand how artificial intelligence will reshape manufacturing.
From Battery Factories to AI Systems
Aris Machina was founded by Carlsson together with Siddharth Khullar, who now serves as CEO. Khullar previously led AI initiatives at Northvolt and brings deep operational insight into large scale manufacturing environments.
According to Carlsson, many industrial companies recognise that AI will fundamentally change how factories operate but struggle to identify where to begin. Aris Machina aims to fill that gap by offering an operating system designed specifically for complex manufacturing processes.
Carlsson even suggested that if such a system had existed earlier, it might have helped Northvolt navigate some of its operational challenges.
Khullar noted that both investors and customers are approaching the company with a similar request, to understand what lessons were learned during Northvolt’s rapid scale up and equally rapid collapse. These conversations, he said, have been candid and constructive.
A Personal Reckoning With Failure
Reflecting on the past year, Carlsson described it as one of the most difficult periods of his career. After dedicating himself entirely to building Northvolt, the collapse represented not just a business failure but a deeply personal one.
Still, he appears determined to apply those hard won lessons to a new chapter. Carlsson retains a significant personal stake in Aris Machina, estimated between 25 and 50 percent, underscoring his long term commitment to the venture.
Europe’s Broader Innovation Debate
The discussion took place at the GoWest VC conference in Gothenburg, where broader questions about Europe’s innovation ecosystem were also raised. Among the speakers was Michiel Scheffer, president of the board of the European Innovation Council.
Scheffer spoke about the EU’s €5 billion ScaleUp Europe Fund, designed to address chronic shortages of late stage growth capital across the bloc. While €3 billion has already been committed by private investors, Scheffer highlighted the notable absence of participation from Germany and France, describing the initiative as still heavily Nordic in nature.
He said the fund’s first investment is expected this summer.
Scheffer also commented on the recent announcement of the Eu Inc initiative by Ursula von der Leyen, expressing surprise at the decision to pursue the framework as a regulation rather than a directive.
A Second Act Under Scrutiny
For Carlsson, the launch of Aris Machina represents both a fresh start and a test of resilience. While the shadow of Northvolt looms large, early investor interest and customer curiosity suggest that Europe’s industrial AI story is far from over.