Northvolt will eliminate a large number of jobs and sell or find partners for its energy storage and materials businesses as it tries to survive by making its first gigafactory in northern Sweden its top priority. The Financial Times reported Monday Northvolt has been delayed by problems at its factory in northern Sweden and is struggling from European carmakers slowing their plans to shift to electric vehicles. To respond to the financial challenges, its executives said it would be delaying plans to build three more gigafactories in joint initiatives with Volvo Cars in Canada, Sweden, and Germany. However, it said more details about that and the number of jobs cut will come out later. Prime Minister Justin Trudeau and Quebec Premier Francois Legault announced in 2023 the construction of a multibillion-dollar EV battery plant located east of Montreal for Northvolt. READ MORE: UPDATED: Trudeau announces spending $2.7 billion for new EV battery plant in Quebec“What happened here today, what we're announcing today, didn't happen by accident, and it won't continue without effort,” said Trudeau.“It's deliberate work in partnership with the Government of Quebec that demonstrates that building a strong economy for the future and protecting the environment go together may seem obvious to everyone in the room.”Northvolt said it would stop its cathode active material production, selling one location and making purchases from Chinese or South Korean businesses. Additionally, it vowed to find a buyer or partner for its energy storage business located in Gdansk, Poland.Because it is hemorrhaging cash, it said its cost-cutting plans would “regrettably include some difficult decisions on the size of our workforce.” Northvolt CEO Peter Carlsson called building a battery company from scratch “a profoundly capital-intensive and challenging endeavour.”“We have come a long way,” said Carlsson to the Financial Times.“Now it’s time to focus on the core, to learn from the past and to scale up our core business to make sure that we can meet our customers’ expectations and to help Europe achieve a sustainable battery ecosystem.” While various world leaders are pushing for EVs, Europe’s carmaking and battery industries are experiencing an unclear future because of the large investments required to develop them and tough competition from Asia. Volkswagen has warned it could shut down factories in its home market of Germany for the first time, and Volvo has gone back on its goal to sell only EVs by 2030. In 2021, Northvolt became the first European company to create a battery cell for EVs from a homegrown gigafactory, but it has been unable to scale up production since then. Although its gigafactory in Skelleftea can produce up to 16 gigawatt hours per year, it is making less than one now. BMW cancelled a US$2 billion contract with Northvolt, providing it to Samsung SDI because it had the supplies it needed. While South Korean and Chinese groups are creating battery factories in Europe, some have been paused due to the lack of interest in EVs. To add to the challenges, Northvolt has struggled to finish its latest round of fundraising, which is essential for scaling up production in Skelleftea and has led it to cut investments and costs. “As difficult as this will be, focusing on what is our core business paves the way for us to build a strong long-term foundation for growth that contributes to the western ambitions to establish a homegrown battery industry,” said Carlsson. Northvolt launched its strategic review in July and aims to focus on cell manufacturing in Skelleftea, raising questions about future of its recycling and materials operations.After making a significant breakthrough with sodium-ion batteries not requiring lithium, cobalt, or nickel, it is debating the direction it intends on heading. Although it is seeking buyers or partners for its energy storage business, executives said it would be open to developing the sodium-ion technology with other businesses producing it.
Northvolt will eliminate a large number of jobs and sell or find partners for its energy storage and materials businesses as it tries to survive by making its first gigafactory in northern Sweden its top priority. The Financial Times reported Monday Northvolt has been delayed by problems at its factory in northern Sweden and is struggling from European carmakers slowing their plans to shift to electric vehicles. To respond to the financial challenges, its executives said it would be delaying plans to build three more gigafactories in joint initiatives with Volvo Cars in Canada, Sweden, and Germany. However, it said more details about that and the number of jobs cut will come out later. Prime Minister Justin Trudeau and Quebec Premier Francois Legault announced in 2023 the construction of a multibillion-dollar EV battery plant located east of Montreal for Northvolt. READ MORE: UPDATED: Trudeau announces spending $2.7 billion for new EV battery plant in Quebec“What happened here today, what we're announcing today, didn't happen by accident, and it won't continue without effort,” said Trudeau.“It's deliberate work in partnership with the Government of Quebec that demonstrates that building a strong economy for the future and protecting the environment go together may seem obvious to everyone in the room.”Northvolt said it would stop its cathode active material production, selling one location and making purchases from Chinese or South Korean businesses. Additionally, it vowed to find a buyer or partner for its energy storage business located in Gdansk, Poland.Because it is hemorrhaging cash, it said its cost-cutting plans would “regrettably include some difficult decisions on the size of our workforce.” Northvolt CEO Peter Carlsson called building a battery company from scratch “a profoundly capital-intensive and challenging endeavour.”“We have come a long way,” said Carlsson to the Financial Times.“Now it’s time to focus on the core, to learn from the past and to scale up our core business to make sure that we can meet our customers’ expectations and to help Europe achieve a sustainable battery ecosystem.” While various world leaders are pushing for EVs, Europe’s carmaking and battery industries are experiencing an unclear future because of the large investments required to develop them and tough competition from Asia. Volkswagen has warned it could shut down factories in its home market of Germany for the first time, and Volvo has gone back on its goal to sell only EVs by 2030. In 2021, Northvolt became the first European company to create a battery cell for EVs from a homegrown gigafactory, but it has been unable to scale up production since then. Although its gigafactory in Skelleftea can produce up to 16 gigawatt hours per year, it is making less than one now. BMW cancelled a US$2 billion contract with Northvolt, providing it to Samsung SDI because it had the supplies it needed. While South Korean and Chinese groups are creating battery factories in Europe, some have been paused due to the lack of interest in EVs. To add to the challenges, Northvolt has struggled to finish its latest round of fundraising, which is essential for scaling up production in Skelleftea and has led it to cut investments and costs. “As difficult as this will be, focusing on what is our core business paves the way for us to build a strong long-term foundation for growth that contributes to the western ambitions to establish a homegrown battery industry,” said Carlsson. Northvolt launched its strategic review in July and aims to focus on cell manufacturing in Skelleftea, raising questions about future of its recycling and materials operations.After making a significant breakthrough with sodium-ion batteries not requiring lithium, cobalt, or nickel, it is debating the direction it intends on heading. Although it is seeking buyers or partners for its energy storage business, executives said it would be open to developing the sodium-ion technology with other businesses producing it.
