Northvolt to lay off 1,600 staff in Sweden, maintains commitment to Quebec plant

The entrance to Northvolt, the new EV battery plant being built by the Swedish manufacturer in Saint-Basile-le-Grand, east of Montreal, Que.,Thursday, May 16, 2024. (Christinne Muschi, The Canadian Press)

Swedish battery manufacturer Northvolt will lay off 1,600 employees in Sweden, a fifth of its workforce, as it seeks to "concentrate all energy and investment on (its) core business" amid financial difficulties.

The company announced on Monday its intention to cut 1,000 jobs at Skelleftea, 400 at Vasteras and 200 in Stockholm.

The dismissals will be the subject of negotiations with the unions concerned.

In a statement, Northvolt president and CEO Peter Carlsson explained that "while the overall momentum towards electrification remains strong," the company must ensure that it takes "the right measures at the right time in response to automotive market headwinds and the broader industrial climate."

As part of the restructuring, the company will suspend development of the expansion project at its Northvolt Ett plant in Skelleftea, as well as slowing down programs and expansion at its Vasteras laboratories.

This reduction in activities in Sweden will lead to a drop in administrative requirements, which explains the positions cut in Stockholm, where its head office is located.

Two weeks ago, Northvolt announced that it was abandoning its cathode manufacturing project in Borlange and putting its cathode activities at its parent plant in Skelleftea on pause.

However, the company said that it was maintaining its commitments to the construction of three other major projects, including a cell plant on Montreal's South Shore, but that it would unveil the new schedule later this autumn.

Northvolt's financial difficulties led to debates in the National Assembly last week over the blocks of energy earmarked for its future plant to be built in Saint-Basile-le-Grand and McMasterville, in the Montérégie region.

This report by The Canadian Press was first published in French on Sept. 23, 2024.