Northvolt to cut staff in major cost-saving move amid EV market downturn

• Swedish battery maker Northvolt announced Monday that it plans make some redundancies.
• The company announced plans to shut down, sell, or consolidate some significant facilities in Europe and the U.S.
• In Stockholm, Sweden, Northvolt is a highly valued privately-owned tech company that produces lithium-ion batteries for the electric vehicle industry.
• The firm did not disclose details on how many jobs would be affected.

Northvolt, a major battery manufacturer for Europe's electric vehicle market, announced on Monday that it plans to lay off workers, close one of its facilities, and engage in talks with partners and investors to safeguard the future of its plant in Poland.

Northvolt, a privately-held tech firm based in Stockholm, Sweden, is one of Europe's most valuable companies that specializes in building lithium-ion batteries for the electric vehicle industry. The company has formed partnerships with several major European automakers, including BMW and Volkswagen.

Northvolt announced that it had to make "some tough choices regarding the size of our workforce to align with the demands of a scaled-down operation."

No final decisions have been made on the precise nature of any resizing, and the firm did not disclose details on how many jobs would be affected.

The company stated that they are continuing to have constructive talks with the unions and will make every effort to reduce the need for layoffs.

Northvolt's battery maker stated that the "difficult economic climate and a reevaluation of our immediate priorities" led to the decision to implement cost-cutting measures.

"Although it will be challenging, concentrating on our core business is crucial for us to establish a robust long-term foundation for growth that supports the Western aspirations to develop a domestic battery industry," Peter Carlsson, Northvolt's CEO and co-founder, stated.

The electric vehicle industry has put immense pressure on Northvolt in recent months, particularly with regard to demand challenges.

In May, the European Alternative Fuels Observatory reported that electric vehicle registrations in Europe decreased by 3% year-over-year, while plug-in hybrid registrations declined by 10% to 226,000.

Northvolt has faced challenges to fulfill ambitious production targets, as evidenced by the cancellation of a 2 billion euro deal with a key partner in June.

Northvolt was unable to deliver on time, resulting in the cancellation of the deal, as BMW stated at the time.

Northvolt is streamlining its battery-making processes in Europe by combining certain operations.

Northvolt has announced that its cathode active material production facility in Skellefteå, Northvolt Ett Upstream 1, will be put "on hold" to reduce operating costs and improve the timing of a production increase.

Northvolt has announced the termination of its Northvolt Fem program in Kvarnsveden, Borlänge, Sweden. The company has already sold the site, which it acquired in 2022, to an unnamed buyer.

Northvolt Systems in Gdańsk, Poland, will be discussed for potential partnerships and investment with Northvolt.

The battery systems production site Northvolt Dwa is wholly owned by Northvolt Systems.

Northvolt has announced its plans to integrate its California-based subsidiary Cuberg and lithium metal technology into its Northvolt Labs unit in Sweden.

Several notable blue-chip investors back Northvolt, which was last privately valued at $12 billion.

The world's largest asset manager, , , Baillie Gifford, an early investor, and Singaporean sovereign wealth fund GIC are among the backers of the project.

Europe's tech ecosystem sees the company as a potential IPO candidate.

Last year, Reuters reported, based on four unnamed sources, that the company was planning a stock market listing that could value it at over $20 billion.

CNBC couldn't verify the report, and Northvolt didn't respond to CNBC's request for comment.