The electric car market is not growing as expected, and this is affecting not only the plans of car manufacturers but also the companies that produce battery cells for BEVs. Northvolt, for example, has just announced some measures as part of a “strategic review” that reflect a “challenging macroeconomic environment.” The company has therefore decided to reset its priorities and unfortunately, there are also job cuts coming.
As Peter Carlsson, CEO and co-founder of Northvolt, points out, difficult decisions need to be made at this time to secure the future of the company.
With the strategic review now underway, we need to take some difficult actions in order to secure the foundation of Northvolt’s operations to improve our financial stability and strengthen our operational performance. While conditions are challenging right now, there is no doubt that the global transition to electrification, and the long-term prospects for cell manufacturers, including Northvolt, are strong.
So, how does this “strategic review” impact the company’s business? In Skellefteå, Sweden, Northvolt has decided to halt production at the Northvolt Ett Upstream 1 Gigafactory until further notice. In addition, a facility in Borlänge, Sweden that was to produce active cathode material has been closed. Northvolt has entered into an agreement to sell the site.
The company is also seeking partners to keep its facilities in Poland running. In California, USA, Northvolt has already announced its intention to integrate its subsidiary Cuberg into Northvolt Labs, Sweden.
In line with its focus on large-scale cell production, Northvolt remains engaged with NOVO (Sweden), Northvolt Drei (Germany) and Northvolt Six (Canada). Any revisions to the timelines of these projects will be confirmed during the fall, along with any additional actions needed to reduce costs.
Regarding staff reductions, the company says that no final decisions have been made at this time on the precise nature of any downsizing. Negotiations are currently underway with the unions and efforts will be made to minimize the need for layoffs.
This article is originally published on hdmotori.it
