Beleaguered Swedish electrical automotive battery maker Northvolt stated Monday it could reduce its workforce because it scales again operations to deal with its primary gigafactory in Sweden.
The announcement comes as gross sales of electrical automobiles are slumping in Europe and the continent lags far behind China within the manufacturing of batteries.
Northvolt stated it was placing a facility that makes key battery supplies at its primary Swedish website in Skelleftea “into care and upkeep till additional discover”.
The transfer comes on the heels of Northvolt’s latest announcement that it was scrapping plans to construct a facility to provide cathode lively materials in Borlange, Sweden.
“The price-saving mechanisms needed for Northvolt to satisfy its core goal of focussing on large-scale cell manufacturing will regrettably embody some tough selections on the scale of our workforce to match the wants of a diminished scale of operations,” the corporate stated in a press release.
It didn’t say what number of jobs could be reduce.
Northvolt had 5,860 workers on the finish of 2023.
Northvolt stated the macroeconomic atmosphere was “difficult”, and chief government Peter Carlsson cited a must “enhance our monetary stability and strengthen our operational efficiency.”
Carlsson careworn that regardless of the setback, “there stays no query that the worldwide transition in direction of electrification -— and the long-term outlook for cell producers, together with Northvolt — is robust.”
The corporate stated it remained dedicated to its large-scale cell manufacturing at its websites in Gothenburg, Sweden, Heide, Germany, and Montreal, Canada.
Nonetheless, “potential revisions to the timelines of those tasks will likely be confirmed in the course of the fall, together with any additional needed cost-saving actions.”
Europe accounts for simply three p.c of worldwide battery cell manufacturing — which China dominates — however it’s aiming to catch up and has set its sights on 25 p.c of the market by the top of the last decade.
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