Northvolt streamlines its operations – reducing its workforce
In streamlining operations, battery company Northvolt says it will initially focus on large-scale cell manufacturing whilst reducing costs and exploring future partnerships to secure its position in the global battery landscape.
Swedish battery manufacturer Northvolt says that it will be taking the initial steps which have been drawn out as part of the company’s strategic review.
These measures are said to reflect the challenging macroeconomic environment and a shift in Northvolt’s short-term priorities, leading to changes in operations and adjusting the size of its workforce.
The main goal of the strategic review is to focus resources on “becoming a leader in sustainable large-scale battery manufacturing.” This involves scaling up the first phase of the Northvolt Ett gigafactory in Sweden, whilst continuing to leverage the R&D facility, Northvolt Labs, in Västerås, Sweden. This is essential for Northvolt to stay a top cell manufacturer in the Western world.
“With the strategic review now underway, we are having to take some tough actions for the purpose of securing the foundations of Northvolt’s operations to improve our financial stability and strengthen our operational performance. While conditions at this time are challenging, there remains no question that the global transition towards electrification — and the long-term outlook for cell manufacturers, including Northvolt — is strong,” says Peter Carlsson, CEO and Co-Founder of Northvolt, in a press release.
Northvolt is adjusting its operations to address short-term challenges while staying focused on its long-term strategy. In doing this the company will pause operations at the Northvolt Ett Upstream 1 cathode material production facility to streamline costs and optimise the ramp-up of the gigafactory. The Northvolt Fem project at the Kvarnsveden site in Borlänge, Sweden will be terminated, and the site, acquired in 2022, will be sold.
In Gdańsk, Poland, Northvolt is looking for partners and investors to support the future of Northvolt Systems, including Europe's largest battery systems production plant, Northvolt Dwa. Northvolt will also, as previously reported, integrate its subsidiary Cuberg, focusing on lithium metal technology, into Northvolt Labs in Sweden.
The company is also evaluating cost-saving measures, including workforce reductions, although final decisions have not been made. Discussions with unions are ongoing to minimise layoffs.
“As difficult as this will be, focussing 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,” Peter Carlsson concluded.