Northvolt to cut 1,600 jobs due to EV slowdown.

Northvolt, a prominent Swedish battery manufacturer, is making significant changes to its operations by cutting 1,600 jobs and reevaluating its strategies in response to challenges in the electric vehicle industry.

The company announced that it is shifting its focus towards accelerating production in large-scale cell manufacturing at its Northvolt Ett factory in Skellefteå, northern Sweden. As part of this restructuring, Northvolt will be suspending the expansion project at the Northvolt Ett factory, which was initially planned to increase annual cell manufacturing capacity by 30GWh. This decision will result in the redundancy of 1,000 positions.

Additionally, Northvolt will be scaling back programmes and expansion initiatives at its Northvolt Labs site in Västerås, Sweden, leading to 400 job cuts. While some core functions will be maintained at Northvolt Labs to support battery innovation and product development, the overall workforce reduction will also affect corporate support functions in Stockholm, resulting in the loss of 200 positions.

The company highlighted the importance of these changes to ensure sustainable operations and cost efficiency. The restructuring is aimed at prioritising commitments to existing automotive clients and increasing production levels through an acceleration programme. Northvolt is currently seeking new investments to support these efforts.

CEO and co-founder of Northvolt, Peter Carlsson, acknowledged the challenges in the automotive market and emphasised the need for strategic adjustments to navigate these headwinds effectively. Carlsson stated, “Success in the ramp-up of production at Northvolt Ett is critical for delivering to our customers and enabling sustainable business operations.”

Despite the setbacks, Northvolt remains committed to establishing a strong European industrial base for battery production and scaling up its operations for future growth. The company’s decision to refocus its efforts on core business areas is seen as a necessary step towards building a robust foundation for long-term success.

This news comes at a critical time for the electric vehicle industry, with the European Automobile Manufacturers Association (ACEA) advocating for urgent action to boost the adoption of electric cars. Recent data has shown a decline in the market share of battery-electric vehicles in the EU, underlining the importance of innovative solutions and strategic investments in the sector.

Northvolt’s restructuring efforts reflect a broader trend in the industry as companies navigate challenges and work towards sustainable growth in the rapidly evolving electric vehicle market. By realigning its operations and focusing on core competencies, Northvolt aims to position itself for success in the competitive landscape of battery manufacturing.