Northvolt cuts 1,600 in Sweden amid financial struggles

GREEN BATTERY manufacturer Northvolt has plans to cut 1,600 jobs across its operations in an ongoing effort to survive in the “challenging macroeconomic climate” of the European EV market.

Northvolt’s initial cost-saving strategy involved downsizing global operations, including moving its development of lithium-metal battery technology from California to its main R&D Northvolt Labs in Västerås, Sweden.

Though it secured US$5bn in funding earlier this year, the largest green loan ever in Europe, the company has announced further downsizing measures. These are expected to lead to the redundancy of 1,000 workers at its Skellefteå site, and an additional 600 losses split across its Västerås and Stockholm sites.

Peter Carlsson, the CEO of Northvolt, said: “We take the right actions at the right time in response to headwinds in the automotive market, and wider industrial climate.

“We now need to focus all energy and investments into our core business. Success in the ramp-up of production at Northvolt Ett is critical for delivering to our customers and enabling sustainable business operations.”

Northvolt Ett

Northvolt specialises in sustainable battery cell production, producing 98% of its energy from fossil-free sources, and aims to have 50% of its lithium-ion cells made from recycled materials.

The company predominantly manufactures lithium-ion cells but has also developed new technology to make sodium-ion and lithium-metal cells.

Their ambitious lithium-ion battery gigafactory, Northvolt Ett, is based in Sweden and has a production capacity of 60 GWh. It currently operates at 16 GWh.

Plans to expand the plant’s capacity by 30 GWh were cut short in the strategic overhaul, and Ett’s cathode active material facility has been put into care and maintenance.

Low demand in European EVs

The European EV market took a hit this year, as figures showed a decline of 5% year-on-year compared to the general automative market, which had a growth of 4%.

Europe has faced growing competition in the EV and EV battery market from China, which is the largest producer and consumer for both, accounting for just under 60% of global electric car registrations last year.

Northvolt has put provisions in place to support employees who are laid off, includes assisting in future employment and relocation, as well as visa and family support.

Daniela Maniaci, Northvolt’s chief people officer, said: “In supporting employees who will leave the company, we are committed to handling the process with compassion and care, and ensuring everyone receives guidance needed for their next steps.”