September 24, 2024 – Northvolt AB, a prominent Swedish battery manufacturer, has announced plans to reduce its global workforce by 20% and halt the expansion of its main factory in northern Sweden. This decision comes as a response to a funding crisis triggered by the slowing demand for electric vehicles.
The layoffs, affecting 1,600 positions, are part of a strategic review announced earlier this month. Northvolt is currently engaged in negotiations with lenders and investors for new financing agreements. In January of this year, the company secured a 5billiongreenloan,pushingitsoveralldebtandequityinvestmentstoover13 billion. Northvolt has been striving to establish a European-based supply chain for electric vehicle batteries.
However, the company has faced increasing pressure to scale up its operations this year. The slowdown in electric vehicle demand, coupled with fierce competition from Chinese manufacturers and a series of health and safety issues, have strained Northvolt’s operations.
The job cuts will be spread across Northvolt’s factories in Skelleftea (1,000 positions), Vasteras (400 positions), and Stockholm (200 positions). The company stated that all layoffs will be subject to negotiations with labor unions.
Peter Carlsson, CEO of Northvolt, commented, “We need to ensure that we are taking the right actions in response to the headwinds facing the automotive market and the broader industrial environment.”
Northvolt, founded in 2016, is a Swedish battery manufacturer based in Stockholm. The company was established by Volkswagen Group, Goldman Sachs, and Siemens. In July of this year, Northvolt released its 2023 financial results, showing an increase in revenue to 128millionbutawideninglossfrom284 million to $1.167 billion.
