Northvolt is experiencing a sharp downturn in electricity supply
The crisis, or rather the sharp slowdown in the development of electric mobility, has hit Europe’s first gigafactory. It’s Swedish battery maker Northvolt, whose crisis is leading to predictions of 1600 staff cuts. The reduction is distributed between the plants in Skelleftea (1000 positions) and Västeras (400 positions), as well as in the Stockholm offices (200 positions).
“Although the overall electrification momentum remains strong, we must ensure we are taking the right action at the right time in response to the obstacles in the automotive market and the broader industrial climate,” commented Northvolt CEO and co-founder Peter Carlsson. “We need to focus all our energy and investment in our core business. The decisions we make today, however difficult, are necessary for the future of Northvolt.”
The expansion project at the Skelleftea plant, which aims to create an additional 30 GWh per year of cell capacity, will therefore be suspended.
In any case, the core functions that will enable Northvolt Labs to maintain its position as Europe’s leading campus for battery innovation and product development will be retained. To reach its targets, Northvolt explains that it needs to reduce its workforce by 20% globally and 25% in Sweden.