Battery maker Northvolt to restructure its business cutting 1,600 jobs in Sweden

Northvolt has been forced to restructure its business due to the current challenging environment when it comes to electric mobility in Europe (for instance, sales share of zero-emission heavy trucks (above 12 ton) increased from 0.7% in the first half of 2023 to 1.2% in the first half of 2024). Now, Northvolt announced that about 1,600 jobs will be cut in Sweden alone, split across Skellefteå (1,000 positions), Västerås (400 positions) and Stockholm (200 positions). All redundancies are subject to ongoing union negotiations, as officially announced.

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, programs and expansion will be slowed at Northvolt Labs. Northvolt will also reduce the size of its corporate support functions, which today are largely located in Stockholm.

Northvolt restructuring its business

In September, the Northvolt Board had agreed to the following actions:

• In California, United States, Northvolt has already communicated its intention to integrate its subsidiary Cuberg and lithium metal technology into Northvolt Labs, Sweden.
• In Skellefteå, Sweden, Northvolt intends to place operations at Northvolt Ett Upstream 1 cathode active material production facility into care and maintenance until further notice. This is motivated by a necessity to streamline operating costs, as well as optimize the sequencing of Northvolt Ett’s ramp-up.
• In Borlänge, Sweden, the Northvolt Fem program on the Kvarnsveden site will be terminated. The site was acquired by Northvolt in 2022 and was envisioned as a new facility for cathode active material production. Northvolt has concluded an agreement for the sale of the site.
• In Gdańsk, Poland, Northvolt aims to assure the successful future of Northvolt Systems, including Northvolt Dwa, Europe’s largest battery systems production facility. To enable this, Northvolt will enter into discussions with potential future partners and investors that can capitalize the production of battery systems and packs.

Northvolt CEO Peter Carlsson speaking

The company aims to focus on the ramp-up of the first 16 GWh phase of Northvolt Ett. “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”, commented Peter Carlsson, CEO and Co-Founder of Northvolt.

“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”, Carlsson added.

“Today marks one of the most challenging times in our company’s journey, as we face the difficult reality of reducing our workforce. Our priority is to offer as much support as possible during this time to all our employees, especially those impacted by redundancy”, said Daniela Maniaci, Chief People Officer at Northvolt.