EV battery maker Northvolt to cut nearly a quarter of its workforce

Swedish EV battery maker Northvolt will cut 1,600 jobs in Sweden, citing its strained financial situation and falling demand. The company announced the move in a statement today. Northvolt currently has more than 6,500 employees, according to its website.

The cuts will hit hardest at the large Northvolt Ett factory in Skellefteå, northern Sweden, where the company will eliminate up to 1,000 jobs. Northvolt added that it would pause plans to expand the plant and focus its resources on accelerating battery cell production there and meeting its commitments to existing customers.

About 400 jobs will be cut at the research facility in Västerås, with another 200 in the capital, where most support functions are based.

CEO Peter Carlsson said the job cuts were necessary to secure the company’s future. „We must now focus all our energy and investment on our core business. Successfully ramping up production at Northvolt Ett is crucial to supplying our customers and enabling the business to operate sustainably,“ he said.

Northvolt was founded in 2016 and is one of Europe’s major manufacturers of batteries for electric vehicles. Europe is now seeking to catch up with competitors in Asia and North America. In recent months, however, production at Northvolt has been delayed. In May, automaker BMW withdrew from a battery supply contract worth two billion euros (CZK 50.2 billion) because of these delays.

Northvolt’s largest shareholder is German automaker Volkswagen. Since its founding, the company has raised USD 15 billion (CZK 339 billion) in loans and equity investments. According to Swedish media, it is trying to arrange a new share issue worth 7.5 billion Swedish kronor (CZK 16.6 billion).