Expansion of the company’s Northvolt Ett gigafactory in Skellefteå, northern Sweden, has been suspended, with 1,000 jobs set to be lost at the site. Northvolt Labs, the firm’s R&D centre in Västerås, will see 400 jobs go, while 200 corporate positions in Stockholm will also be cut.
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The job losses mark a 20 per cent reduction in Northvolt’s total workforce and come as a significant blow to Europe’s EV ambitions, with Northvolt long heralded as the continent’s leading response to China’s EV battery dominance. In a statement, Peter Carlsson, Northvolt’s co-founder and CEO, pointed to a struggling automotive market and challenges across the wider business environment. Warning signs for the company were present from June, when BMW cancelled a €2bn contract for battery cells that Northvolt reportedly could not deliver on time.
“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,” he said.
“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.”
The company said its priorities have been refocused to delivering the first 16GWh phase of Northvolt Ett, consolidating operations at the gigafactory and delivering on commitments to existing automotive customers. Plans to add a further 30GWh of manufacturing capability have been shelved, with the Northvolt Ett cathode active material facility placed into ‘care and maintenance’. Operations at Northvolt Labs will also be stripped back, though the company has pledged to maintain the site’s ‘fundamental platforms’ so that R&D can continue.
“The decisions announced today are both challenging and painful,” said Carlsson.
“I and all my colleagues at Northvolt will do everything we can to support the colleagues who will eventually leave the company. The decisions are, however, necessary to adjust for current realities and enable the long-term success of Northvolt. We are determined to overcome the challenges we face, and to emerge stronger and leaner as we continue forward in our work to contribute to a more sustainable society.”
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