Mon Sep 09 16:03:16 UTC 2024: ## Swedish Battery Maker Northvolt Cuts Jobs Amidst Electric Car Slump
**Skelleftea, Sweden** – Beleaguered Swedish electric car battery maker Northvolt announced on Monday that it will cut its workforce as it scales back operations to focus on its main gigafactory in Sweden. The announcement comes amid a slump in electric car sales across Europe, where the continent lags far behind China in battery production.
Northvolt CEO Peter Carlsson stated that the company is taking “tough actions” to improve financial stability and strengthen operational performance. The company’s financial situation reportedly deteriorated significantly over the summer.
As part of its cost-cutting measures, Northvolt is putting a facility that produces cathode active material at its Skelleftea site into care and maintenance. This follows the company’s recent decision to scrap plans for a battery materials facility in Borlange, Sweden.
Northvolt admitted that job cuts will be necessary to match the needs of a reduced scale of operations. While the exact number of jobs to be cut is unclear, the company currently employs 5,860 workers.
Carlsson stressed that despite the setbacks, the long-term outlook for cell manufacturers like Northvolt remains strong, and the company is committed to its large-scale cell manufacturing at sites in Gothenburg, Sweden; Heide, Germany; and Montreal, Canada. However, potential revisions to the timelines of these projects will be confirmed later this fall.
Northvolt is a crucial player in Europe’s efforts to catch up with China and the United States in battery cell production. The company has faced production delays, leading to a significant order cancellation from BMW in May. Northvolt has also faced scrutiny over work safety concerns at its sites.
Europe aims to achieve a 25% share of the global battery cell market by 2030. However, it currently accounts for only 3%. The continent’s ambition to produce more electric vehicles as part of its green transition faces challenges amidst a difficult economic climate and the need to rapidly scale up battery production.
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