Northvolt, a Swedish EV battery maker, is cutting 1,600 jobs, or 20% of its global workforce, due to production delays, reduced EV demand, and competition from Chinese battery manufacturers.
The cuts will affect 1,000 positions in Skellefteå, 400 in Västerås, and 200 in Stockholm. CEO Peter Carlsson said these changes are necessary for the company to survive financial challenges and reach profitability.
The company has also paused its expansion plans at its main factory, Northvolt Ett, in northern Sweden. Originally, the factory aimed to produce 60 gigawatt-hours (GWh) of battery capacity, enough for one million cars annually.
However, slower-than-expected EV demand and stiff competition, especially from China, have forced Northvolt to focus on its current 16 GWh capacity while shelving further growth.
Despite these setbacks, Northvolt remains determined to continue its mission of producing EV batteries and supporting the European automotive industry.
