1,700 Jobs Saved as Northvolt Navigates Bankruptcy in Sweden

Around 1,700 people will continue to work in the bankrupt Northvolt companies in Sweden, according to the trustee Mikael Kubu. Skellefteå wants the government to support the municipality after the announcement.

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1,700 Jobs Saved as Northvolt Navigates Bankruptcy in Sweden
Photo: Henrik Montgomery/TT

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In addition to the 1,700 who will remain in Sweden, employees of foreign companies will also be included.

"Other staff will be laid off and notification thereof will be sent to the affected individuals starting tomorrow", writes Kubu in a written comment to TT.

He also writes that despite significant cutbacks, it is positive that the operations can continue to some extent, "which is likely to be crucial for being able to sell the operations entirely or partially".

"Cannot shut the door"

According to Mikael Kubu, Northvolt's bankruptcy trustee has been able to reach a principal agreement with the closest affected parties regarding financial guarantees for continued operations.

"This principal agreement will be formalized in the coming days", he writes.

Lorents Burman (S), chairman of the municipal council in Skellefteå, says that the news is "devastating". He wants the government to help the bankruptcy trustee to keep production going "and eventually also find a new ownership constellation for the battery factories in Skellefteå".

A government cannot shut the door on the green transition and battery production in Sweden, it would be a geopolitical and geo-economic failure both for Sweden and Europe. One cannot also leave a single municipality alone in such an exceptional event as this, says Burman at a press conference.

"Better than zero"

The employees at Northvolt in Skellefteå were informed at a meeting on Monday that only 1,200 of the total of around 3,000 in the city will be able to keep their jobs, according to information from Norran.

"1,200 employees are better than zero", said bankruptcy trustee Mikael Kubu to the employees according to a recording that Affärsvärlden has taken part of.

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

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