Northvolt hits the brakes - warns employees

The battery manufacturer Northvolt is announcing a series of measures and shutting down part of the factory in Skellefteå, with approximately 300 employees. It's hard to avoid that it's been tough, says Teodor Mellström, local chairman of the academic union.

» Updated: October 08 2024

» Published: September 09 2024

Northvolt hits the brakes - warns employees
Photo: Magnus Lejhall/TT

Share this article

The crisis-stricken company writes in a press release that it is conducting a strategic review of its operations and refers to a challenging economic situation.

Northvolt writes that it is holding "constructive talks with trade unions" and that it will "do its utmost" to minimize the need for layoffs.

Around 300 people, equivalent to 10 percent of the company's employees in Skellefteå, work in the affected part of the factory that will now be closed, at least temporarily, where so-called active material is manufactured, but which can instead be purchased from others. The focus will be on the production of battery cells.

May lead to notice

Teodor Mellström, chairman of the Academic Association at Northvolt, does not have much more information to share when TT reaches him.

It's not impossible that this will lead to notice, he says.

The company's co-founder and CEO Peter Carlsson writes in a comment that the company must make a number of tough decisions, including to "improve financial stability and strengthen operations".

The company, which is still making large losses, is constantly in need of recurring billion-kronor injections. A financing round with investors is currently underway, which is going slowly, and it is partly because of this that the company is reviewing costs.

That there will be layoffs is clear, according to information to TT, and more or less the entire company is affected, mostly in Skellefteå.

There has been a lot of turmoil around the company, that it has big problems getting production going, customers who complain, and financing on the verge of collapse. And now, the Skellefteå factory is closing certain parts.

Toning down

Teodor Mellström tones down the war headlines.

It sounds more dramatic than it is, it's not necessarily something that affects production, he says.

The company has previously announced that plans for a factory in Borlänge are being shut down. On Monday, there were also reports that the company's factory in Canada may be delayed by over a year.

Northvolt may also take in new owners for its facility in Gdansk, Poland, according to Monday's announcement. The battery manufacturer adds that plans for investments in Heide, Germany, and Montreal, Canada, may be adjusted.

Read more

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Swedes Face Higher Costs Due to Norway's Fixed Electricity Prices
2 MIN READ

Swedes Face Higher Costs Due to Norway's Fixed Electricity Prices

Nvidia Stock Drops 2.7% Amid New York Market Decline
1 MIN READ

Nvidia Stock Drops 2.7% Amid New York Market Decline

Trump Criticizes EU's $33.9 Billion Fine on Google, Threatens Trade Probe
2 MIN READ

Trump Criticizes EU's $33.9 Billion Fine on Google, Threatens Trade Probe

US Job Market Slows with Only 22,000 New Jobs in August
2 MIN READ

US Job Market Slows with Only 22,000 New Jobs in August

Tesla Board Proposes New Bonus Plan for Elon Musk
1 MIN READ

Tesla Board Proposes New Bonus Plan for Elon Musk

13 Suspected of Insider Trading After Dawn Raid
1 MIN READ

13 Suspected of Insider Trading After Dawn Raid

18 Charged in Major Insider Trading Case in Sweden and Norway
1 MIN READ

18 Charged in Major Insider Trading Case in Sweden and Norway

Skandiabanken Offers Lowest Mortgage Rates in August
1 MIN READ

Skandiabanken Offers Lowest Mortgage Rates in August

Stockholm Stock Market Rises for Third Consecutive Day
1 MIN READ

Stockholm Stock Market Rises for Third Consecutive Day

Danish Energy Giant Ørsted Lowers Profit Expectations for This Year
1 MIN READ

Danish Energy Giant Ørsted Lowers Profit Expectations for This Year

Foreign Ownership Boosts Swedish Economy with Productivity Growth
1 MIN READ

Foreign Ownership Boosts Swedish Economy with Productivity Growth

Calm Housing Market Spurs Speculator Interest
2 MIN READ

Calm Housing Market Spurs Speculator Interest

Asian Stock Markets Rise Amid US-Japan Tariff Agreement
1 MIN READ

Asian Stock Markets Rise Amid US-Japan Tariff Agreement

USA and Japan Reach New Trade Agreement on 15% Tariffs
1 MIN READ

USA and Japan Reach New Trade Agreement on 15% Tariffs

Activity Toys Pose Serious Injury Risks for Children in EU Survey
1 MIN READ

Activity Toys Pose Serious Injury Risks for Children in EU Survey

Hexagon Sells Software Business for 30 Billion Kronor
1 MIN READ

Hexagon Sells Software Business for 30 Billion Kronor

US Stock Market Sees Broad Gains Amid Labor Market Weakness
1 MIN READ

US Stock Market Sees Broad Gains Amid Labor Market Weakness

Ørsted Sues Trump Administration Over Halted US Wind Project
1 MIN READ

Ørsted Sues Trump Administration Over Halted US Wind Project

US Private Sector Adds 54,000 Jobs in August, Below Expectations
1 MIN READ

US Private Sector Adds 54,000 Jobs in August, Below Expectations

Goldman Sachs: Fed Uncertainty Could Propel Gold Prices
1 MIN READ

Goldman Sachs: Fed Uncertainty Could Propel Gold Prices