Northvolt has announced a revised scope of its operations in Sweden following its strategic review and in response to a challenging macroeconomic environment. The company will focus its resources on accelerating large-scale cell manufacturing at Northvolt Ett, focusing on ramping up the first 16 GWh phase of production capacity.
As part of this adjustment, approximately 1,600 employees will be made redundant across Sweden—1,000 positions in Skellefteå, 400 in Västerås, and 200 in Stockholm. These redundancies are subject to ongoing union negotiations.
The company aims to prioritize commitments to its automotive customers by enhancing production at Northvolt Ett through an acceleration program that has already tripled cell production since the year’s start.
CEO Peter Carlsson stated: “It is necessary to focus our resources on our core business amid current market headwinds. Success at Northvolt Ett is critical for delivering to our customers and ensuring sustainable operations. While these decisions are difficult, they are essential for Northvolt’s future.”
Operational Changes
- Skellefteå: Expansion plans to add 30 GWh of annual cell manufacturing capacity at Northvolt Ett are suspended. The cathode active material facility has been placed into care and maintenance.
- Västerås: Programs and expansions at Northvolt Labs will be slowed, but core platforms will be maintained to retain its position in battery innovation.
- Stockholm: Corporate support functions will be reduced as operations in Sweden are scaled back.
Overall, a workforce reduction of approximately 20% globally and 25% in Sweden is required to ensure a sustainable operation and cost base.
Northvolt is working with partners and stakeholders to support affected employees, including assistance with job searches and relocation. A task force is being established to aid employees on work visas and their families.
Chief People Officer Daniela Maniaci commented: “Our priority is to support all employees during this difficult time, especially those impacted by redundancies. We are committed to handling the process with care and providing guidance for their next steps.”
Commitment to Future Growth
Despite the adjustments, Northvolt remains dedicated to establishing a European industrial base for battery production by focusing on scaling up battery cell production at Northvolt Ett.
Peter Carlsson concluded: “These challenging decisions are necessary to adapt to current realities and enable Northvolt’s long-term success. We are determined to overcome these challenges and continue contributing to a more sustainable society.”
Source: Northvolt
