EV battery firm Northvolt has outlined a review of operations in Sweden which will result in the loss of 1,600 jobs.
The move comes amid slowing sales of battery electric vehicles (BEVs) in Europe. The company cited headwinds in the automotive market.
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The company said it will focus on accelerating production in large-scale cell manufacturing at Northvolt Ett. As part of that strategy, it is planning the redundancy of approximately 1,600 Northvolt employees, split across Skellefteå (1,000 positions), Västerås (400 positions) and Stockholm (200 positions). All redundancies are subject to ongoing union negotiations, the company said.
In adjusting its near-term ambitions and focusing on the ramp-up of the first 16 GWh phase of Northvolt Ett, Northvolt said it is positioning itself to prioritize commitments to its current automotive customers.
Peter Carlsson, CEO and Co-Founder of Northvolt, said: “While overall momentum for electrification remains strong, we need to make sure that 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. Recent production records at Northvolt Ett show that we are on the right path, but the decisions we’re taking today, however tough, are required for Northvolt’s future.”
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By GlobalDataRescoped operations
In Skellefteå, Sweden, the development of Northvolt Ett expansion project will be suspended. The construction project was intended to provide an additional 30 GWh of annual cell manufacturing capacity. The decision follows the announcement earlier this month to place the Northvolt Ett cathode active material facility into ‘care and maintenance’.
In Västerås, Sweden, programs and expansion will be slowed at Northvolt Labs. The fundamental platforms hosted at Northvolt Labs will be maintained, enabling Northvolt Labs to retain its position as Europe’s ‘leading campus for battery innovation and product development’.
As it reduces the scope of its operations and programs in Sweden, Northvolt will also reduce the size of its corporate support functions, which today are largely located in Stockholm.
Northvolt said the rescoping of operations is critical to ensure a ‘sustainable operation and cost base’. In order to achieve this a workforce reduction of approximately 20% at a global level, and 25% in Sweden is required, it said.
