Northvolt to halt some battery production, cut jobs amid EV slump

Swedish battery maker Northvolt on Monday said it will let go of workers as part of a cost-cutting effort in the face of challenges for the electric-vehicle market in Europe. The company went through a period of rapid growth before several setbacks.

“With the strategic review now underway, we are having to take some tough actions for the purpose of securing the foundations of Northvolt’s operations to improve our financial stability and strengthen our operational performance,” Chief Executive Peter Carlsson said in a statement.

The European EV market has slowed dramatically amid worries about trade tariffs, the rollback of government incentives and a lack of charging stations. European carmakers also are confronting competition from lower-cost imports from China.

Amid these pressures, BMW canceled an order for 2 billion euros ($2.22 billion) of EV batteries, pushing to Northvolt devise another growth strategy. Northvolt will seek strategic partners and focus on large-scale cell manufacturing.

Though the company plans to halt production of cathode materials at its gigafactory in Skelleftea, Sweden, it is committed to opening gigafactories in Germany and Canada. It also has a joint venture with Volvo for another factory in Sweden.