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https://www.mining.com/web/northvolt-to-cut-staff-halt-output-as-ev-demand-falls/Northvolt to cut staff, halt output as EV demand falls

Bloomberg News | September 10, 2024 | 3:08 am Battery

Swedish battery maker Northvolt AB is working to halt a financial tailspin by pausing some production at its flagship factory and cutting jobs as it comes to grips with operational difficulties and a drop in demand for electric vehicles.

The initial steps of its strategic review also include seeking partners for facilities in Poland, Northvolt said Monday in a statement, without specifying the size of any workforce reductions from among its about 6,000 staff. The company has sold a Swedish site it had previously planned for making cathode material, a precursor to manufacturing batteries.

“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,” Chief Executive Officer Peter Carlsson said.

The company is pausing operations at its Northvolt Ett Upstream 1 cathode material production facility until further notice, according to the statement.

Northvolt, the continent’s biggest homegrown battery manufacturer, has struggled to ramp up production at its main factory outside the town of Skelleftea near the Arctic Circle. It already pushed back plans for an initial public offering to next year because of a challenging market and the operational problems.

The market for battery makers continues to worsen amid a slump in EV sales. Companies including Volkswagen AG, Stellantis NV and Mercedes-Benz Group AG have had to scale back or refocus battery projects this year.

Northvolt said it remains committed to its facilities NOVO in Sweden, Northvolt Drei in Germany and Northvolt Six in Canada and is in close dialog with the key stakeholders.

Potential revisions to those projects’ timelines will be confirmed during the fall, along with any further cost-saving actions, the company said.