The entrance to Northvolt, the new EV battery plant being built by the Swedish manufacturer in Saint-Basile-le-Grand, Que. on May 16.Sweden’s Northvolt AB is cutting a fifth of its global work force as it reins in expansion plans in the face of a downturn in demand forNorthvolt said on Monday it is laying off 1,600 employees at plants located in its home country to focus on boosting production at its main factory and serving its current roster of automotive customers. Earlier this month,.
In a statement to The Globe and Mail, the office of Christine Fréchette, Quebec’s Minister for Economy, Innovation and Energy, called the situation a “controlled risk. The government said it is in constant contact with the company, and has been assured the project is not affected by the latest round of cuts.
Northvolt is ratcheting back its expansion strategy as automakers such as General Motors Co., Ford Motor Co., Volvo Car AB and Volkswagen AG temper their EV outlooks and spending to deal with high capital costs and some resistance among car buyers, who face sticker shock and still-spotty charging infrastructure. In June, BMW cancelled a US$2.15-billion order for Northvolt battery cells.
The battery maker is also slowing programs at its Northvolt Labs facility in Västerås, Sweden, while reducing corporate support staff numbers in Stockholm, it said.“The decisions are, however, necessary to adjust for current realities and enable the long-term success of Northvolt,” he said.