Northvolt to cut 1,600 Jobs, Ramping up 16 GWh Phase of Northvolt Ett Gigafactory

Northvolt has outlined a revised scope of operations, including  the redundancy of approximately 1,600 Northvolt employees in Sweden. It will also focus on the ramp-up of the first 16 GWh phase of the Northvolt Ett facility.

The company says it has positioned itself to prioritise commitments to its current automotive customers.

This priority is further being supported by a recently introduced acceleration programme geared to further increase levels of production.

Northvolt Ett's cell production has increased threefold since the beginning of 2024.

In Skellefteå, Sweden, the development of Northvolt Ett expansion project will be suspended.

The construction project was intended to provide an additional 30 GWh of annual cell manufacturing capacity.

Peter Carlsson, CEO and Co-Founder of Northvolt, says: “While overall momentum for electrification remains strong, we need to make sure that we take the right actions at the right time in response to headwinds in the automotive market, and wider industrial climate. We now need to focus all energy and investments into our core business. Success in the ramp-up of production at Northvolt Ett is critical for delivering to our customers and enabling sustainable business operations. Recent production records at Northvolt Ett show that we are on the right path, but the decisions we’re taking today, however tough, are required for Northvolt’s future.”

He adds “The decisions announced today are both challenging and painful. I and all my colleagues at Northvolt will do everything we can to support the colleagues who will eventually leave the company. The decisions are, however, necessary to adjust for current realities and enable the long-term success of Northvolt. We are determined to overcome the challenges we face, and to emerge stronger and leaner as we continue forward in our work to contribute to a more sustainable society.”

Northvolt Ett is a lithium-ion battery gigafactory, based near the Arctic Circle.