On September 23, it was reported that Northvolt AB reported a 20% global workforce reduction and the suspension of expansion plans at its main factory in northern Sweden to address a financing crisis caused by slowing electric vehicle demand.
Northvolt stated it would pause the large-scale expansion of its Skellefteå factory, reallocating resources to focus on battery production and prioritizing commitments to existing automotive customers. Originally, the expansion was expected to increase the factory’s annual battery production capacity by 30 GWh.
Established in 2016 and based in Stockholm, Northvolt is a joint venture of Volkswagen Group, Goldman Sachs, and Siemens. In July, the company reported its revenue rose to $128 million (US), but losses grew from $284 million to $1.167 billion for the 2023 fiscal year.
The layoffs will impact 1,000 positions at the Skellefteå factory, 400 at the Vasteras factory, and 200 in Stockholm, with negotiations required with unions. This layoff plan is part of a strategic review announced earlier this month as Northvolt is negotiating new financing agreements with banks and investors. In January this year, Northvolt secured $5 billion (US) in green loans, raising its total debt and equity investment to over $13 billion in an effort to build a local EV battery supply chain in Europe.
However, the company faces increasing pressure due to slowing electric vehicle demand, fierce competition with Chinese manufacturers, and a series of safety issues. Peter Carlsson, CEO and Co-Founder of Northvolt, commented: “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.”
Source: WeChat Official Account—电动知家
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