Nothvolt trims its workforce; suspends Northvolt Ett giga expansion project

To cut costs and recalibrate its assets and strategic plans, Northvolt has outlined a revised scope of operations in Sweden to ensure that its resources are focused on accelerating production in large-scale cell manufacturing at Northvolt Ett. The battery cell maker is set to cut about 1,600 jobs across its three locations in Sweden. 

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 company instead had vowed to focus on ramping up the first 16 GWh production capacity at Northvolt Ett. 

The decision follows the announcement earlier this month to place the Northvolt Ett cathode active material facility into care and maintenance. Northvolt claims to positions itself to prioritize commitments to its current automotive customers at present. 

"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", Peter Carlsson, CEO and Co-Founder of Northvolt.

"We now need to focus all energy and investments into our core business. Success in the ramp-up of production at Northvolt Ett is critical for delivering to our customers and enabling sustainable business operations. Recent production records at Northvolt Ett show that we are on the right path, but the decisions we're taking today, however tough, are required for Northvolt's future", he added. 

At the company's Västerås site in Sweden, the battery programs and expansion will be slowed at Northvolt Labs. The fundamental platforms hosted at Northvolt Labs will be maintained, enabling the center to retain its position as Europe's leading campus for battery innovation and product development.

The rescoping of operations is critical to ensure a sustainable operation and cost base, according to Northvolt. The company is currently engaged with its union representatives surrounding all relevant processes and the path forward.

Peter Carlsson concluded, "The decisions announced today are both challenging and painful. I and all my colleagues at Northvolt will do everything we can to support the colleagues who will eventually leave the company". 

"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 noted.