Northvolt cuts back battery gigafactory plans
Swedish battery startup Northvolt is cutting back plans for its factories across Europe.
The cuts are intended to accelerate production in large-scale cell manufacturing at the Northvolt Ett battery gigafactory, ramping up the first 16GWh production at the site.
This will see the expansion plans suspended at the site, losing 1000 jobs, with cuts at NorthVolt Labs in Västerås with 400 jobs lost. These measures are expected to result in the redundancy of approximately 1,600 staff, including 200 in Stockholm.
The company had grown fast on the back of $13bn funding from the European Commission and deals with VW and BMW. However VW has its own battery gigafactory company and BMW recently pulled out of a major €2bn contract.
“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. 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,” said Peter Carlsson, CEO and Co-Founder of Northvolt.
In Skellefteå, Sweden, the development of the Ett expansion project will be suspended. The construction project was intended to provide an additional 30 GWh of annual cell manufacturing capacity. The decision follows the decision to mothball the Ett cathode active material facility, putting it into care and maintenance.
The fundamental platforms hosted at Northvolt Labs will be maintained, enabling the Labs to retain its position as Europe’s leading campus for battery innovation and product development.
“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,” said Carlsson.
The strategic review earlier this month also saw plans to sell off Northvolt Systems in Gdansk, Poland, including Northvolt Dwa, Europe’s largest battery systems production facility. The company is in discussions with potential future partners and investors that can capitalize the production of battery systems and packs.
In California, the company is integrating its Cuberg subsidiary and lithium metal technology into the Labs operation in Sweden. It will also cut the Northvolt Fem program in Borlänge, Sweden. The site was acquired in 2022 as a new facility for cathode active material production and has since been sold.
However in line with its focus on gigafactory cell manufacturing, Northvolt says it remains committed to its battery NOVO (Sweden), Northvolt Drei (Germany), and Northvolt Six (Canada).
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