Finnish battery chemical producer Terrafame has announced the start of negotiations with its employees to implement cost-reduction strategies, which may include job cuts and reduced working hours. The decision comes in response to a global electric vehicle (EV) demand slowdown.
Challenges such as limited charging infrastructure and concerns over EV resale values have contributed to a deceleration in EV sales, impacting the demand for battery chemicals. Terrafame noted that prices for battery chemicals have declined, mirroring drops in essential metals like nickel and cobalt used in battery production.
As of September, the company employed 826 people and anticipated that the cost-saving measures could lead to a reduction of up to 75 person-years. “The possibility of, for example, layoffs, changes to job descriptions, and shifting to part-time work is also considered in the negotiations,” the company stated.
Despite the current challenges, CEO Seppo Voutilainen remains optimistic about the future. “Despite a temporary market downswing, the electrification of mobility is inevitable. Terrafame is a significant part of the European battery value chain, and we believe in the demand for battery chemicals in the longer term,” he said.
Terrafame has the capacity to produce nickel sulfate sufficient for approximately one million electric vehicles annually and claims that its nickel sulfate production has one of the lowest carbon footprints in the industry.
Source: EVMagz
