Swedish EV battery promise Northvolt in turbulent weather

UPDATED 6 OCTOBER 2024 (original publication 10 September 2024) – Northvolt, the Swedish battery manufacturer, is downsizing considerably. Seen as a promise for the future of electric mobility when it was founded in 2015, its CEO has now told staff “it will be turbulent times ahead”, something the Swedish local newspaper Norran reported first.

Northvolt itself officially announced “effects on the workforce” on Monday 9 September with the outcome of its “strategic review” – slang often used by companies to cut activities, cut personnel and increase the value of its shares.

Skellefteå, Borlänge, Gdańsk and California

The battery manufacturer reorganises to cut costs, including at its main site in Skellefteå, where part of the factory will be mothballed, affecting up to 300 employees of this part. It will sell its Borlänge location – where 1,000 jobs were planned to be created. It is also looking for partners and investors for its Gdańsk location in Poland, which is Europe’s largest battery systems production facility. In California, USA, Northvolt continues integrating its subsidiary Cuberg into Northvolt Labs. More details in the official press release here at Northvolt.com.

Accidents and deaths

In the past couple of months, mainly the plant in Skellefteå caused news highlights, with multiple accidents resulting in multiple workers being sent to hospital, as well as multiple illnesses allegedly to exposure to toxics despite personnel reportedly followed procedures. There have been at least four fatalities in recent months, but official investigation has not shown any related cause and effect between the four death.

Unable to deliver to Scania, BMW

Car and truck manufacturers have been complaining that Northvolt was unable to deliver, including industry giants like Scania and BMW. (Read BMW pulls out of Swedish battery factory at Nordicreporter.com). Worldwide, the demand for lithium batteries like the ones made by Northvolt is in steep demand, as car manufacturers and drivers are switching to electric vehicles and battery-driven e-trucks.

Updates October 2024

The problems for Northvolt are increasing fast. The company has an increasing debt of now more than EUR 6 million in taxes and social benefits to the Swedish state. If the company is unable to pay them before 14 October, the state will likely demand that the company reorganises itself or apply for bankruptcy. Swedish media report this on 5 October.