Northvolta leading manufacturer of batteries for the European electric vehicle industry, announced on Monday that intends to lay off employees, close one of its plants and start talks with partners and investors to secure the future of the plant in Poland, CNBC reported. The company did not disclose the extent of the reduction in its workforce of about 6,000 employees.
“We need to take difficult actions to secure the foundations of Northvolt’s business, to improve our financial stability and strengthen our operating results,” said CEO Peter Carlsson.
What else besides job cuts?
In addition to the job cuts, Northvolt is also consolidating several of its key battery manufacturing facilities in Europe. According to CNBC, a statement from the company said: Northvolt is suspending operations at its Northvolt Ett Upstream 1 cathode materials production facility until further notice. The plant in the northern Swedish city of Skellefteå will be “under care and maintenance until further notice” to streamline operating costs and optimise production.
Northvolt Fem’s program in the town of Kvarnsveden in Borlänge, Sweden, will be terminated. The company said it had already agreed to sell the land it acquired in 2022.
Will the Polish plant go under the hammer?
Business optimization also applies a new energy storage factory in Gdańsk, the largest such plant in Europe. Northvolt announced that it will start talks with potential partners and investors who can financially support the production of battery and energy storage systems in Northvolt Systems, suggesting a partial or complete sale of the division, CNBC reports.
Northvolt Systems, which also owns a plant producing battery systems Northvolt Two, is wholly owned by the company.
In the U.S., Bloomberg reported that Northvolt intends to integrate its Californian subsidiary Cuberg with its Northvolt Labs unit in Sweden. The company also said it remains committed to its NOVO plants in SwedenNorthvolt Three in Germany and Northvolt Six in Canada and is in close contact with key stakeholders.
