“Headwinds” force Northvolt to slow down

Battery maker Northvolt has shelved a 30 GWh expansion of the Ett gigafactory to focus on ramping the first 16 GWh in capacity instead. Additionally, the Swedish firm considered a front-runner in Europe’s battery push is laying off 1,600 people, about 20 percent of the workforce. “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,” comments CEO and co-founder Peter Carlsson.

Like other Western battery manufacturers, Northvolt is feeling the strain of slowed electric vehicle sales and Chinese competition, but it has faced operational issues as well. BMW backed out of a 2-billion-dollar contract in June, reportedly because of slow deliveries. Reports suggest that Volkswagen, which holds a significant share in Northvolt, has been unhappy as well.