Swedish battery manufacturer Northvolt is set to eliminate 1,600 jobs as it faces significant challenges in the electric car industry. The company announced the cuts across three of its locations, with 1,000 jobs being lost at its Skellefteå site in northern Sweden, where it is halting the expansion of Northvolt Ett, Europe’s first battery gigafactory. Another 400 jobswill be cut in Västerås, home to Northvolt Labs, and 200 at its Stockholm headquarters.
CEO Peter Carlsson emphasized that while the overall momentum for electrification remains strong, “tough decisions” are necessary to secure the company’s future. The announcement follows weeks of uncertainty for Northvolt employees, who have been dealing with reports of financial difficulties and halted spending.
The electric vehicle market in Europe has been struggling with slower-than-expected growth in consumer demand. Industry figures recently showed that EU car sales fell to 643,000 in August. Carlsson noted the importance of focusing on Northvolt’s core business and scaling up operations at the Skellefteå site to meet a planned 16GWh production capacity, which could eventually expand to 30GWh annually.
The layoffs are part of a wider trend in the industry, following job cuts at companies like Tesla and Volkswagen. Additionally, Northvolt addressed a recent incident involving chemical leaks at its Skellefteå plant, insisting that safety protocols were in place and that the leaks were not related to the building’s design.
