Swedish company Northvolt, which makes batteries for electric cars, will cut 1,600 jobs in Sweden, or a quarter of its capacity, while freezing development at its main production facility to adapt to the tense economic situation and falling demand.
Northvolt’s giant production plant in northern Sweden, Skelleftea, will be hit hardest by these decisions, with around 1,000 workers out of work.
“We need to ensure we take the right actions at the right time to respond to the headwinds in the auto market and the broader industry climate,” owner Peter Carlson said in a statement.
Northvolt, which employs 6,500 people, will cut around 400 jobs at its research centre in Vasteras and another 200 at its offices in Stockholm. At the same time, it is suspending all development plans for its factory in Skeleftea.
From Europe’s “great hopes”
Founded in 2016, Northvolt is one of Europe’s “great hopes” for automotive batteries, dominated by Asian giants, namely from China (CATL, BYD) and South Korea (LG). In recent months, however, production has been delayed and, as a result, in May, BMW has cancelled a €2 billion order due to these delays.
The group says it has concluded over $55 billion in contracts with customers such as the companies Volkswagen, Scania and Volvo. Volkswagen is the largest shareholder in Northvolt, holding 21% of its capital.
