Northvolt to Lay Off 1,600 Amid Financial Strain

Swedish battery manufacturer Northvolt announced it would lay off 1,600 employees, approximately 20% of its workforce, and pause expansion plans due to financial constraints and a slowdown in electric vehicle demand. This decision follows the cancellation of a significant $2.2 billion contract with BMW and challenges in scaling up production. The job cuts will affect several locations in Sweden, including Skellefteå, Västerås, and Stockholm. Despite these setbacks, Northvolt remains committed to its project in Quebec, Canada, where construction will proceed as planned. The company is focusing its efforts on increasing production at its main plant in Skellefteå to generate much-needed revenue. Northvolt is also in negotiations for new financing and has faced additional hurdles, including health and safety concerns at its facilities.