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In streamlining operations, Northvolt will initially give attention to large-scale cell manufacturing while decreasing prices and exploring future strategic partnerships for the aim of securing its place within the international battery panorama.
Northvolt is at the moment asserting its preliminary steps to be taken as a part of its strategic evaluation. These measures replicate a difficult macroeconomic setting and our subsequent reassessment of Northvolt’s near-term priorities, resulting in a re-scope of operations and applicable resizing of our workforce.
The strategic evaluation’s core goal is to focus assets on turning into a pacesetter in sustainable large-scale cell manufacturing. This endeavour entails ramping up the primary section of the Northvolt Ett gigafactory, Sweden, while persevering with to leverage the world-class R&D facility Northvolt Labs, in Västerås, Sweden. This can be a key requirement for Northvolt to keep up its place as a number one cell producer within the Western world.
Peter Carlsson, CEO and Co-Founding father of Northvolt, commented: “With the strategic review now underway, we are having to take some tough actions for the purpose of securing the foundations of Northvolt’s operations to improve our financial stability and strengthen our operational performance. While conditions at this time are challenging, there remains no question that the global transition towards electrification — and the long-term outlook for cell manufacturers, including Northvolt — is strong.”
Tom Johnstone, Interim Chairman of the Northvolt Board of Administrators, commented: “Our success is in part dependent on the overall market ramp-up of electric vehicles and support from stakeholders around us. Equally, we must build on lessons learnt through our journey to date.”
Whereas Northvolt’s challenges stay extremely related within the short-term, they haven’t modified the long-term foundations supporting Northvolt’s key worth proposition. The competitiveness of transatlantic markets, the regionalization of provide chains, in addition to the significance of the battery trade in preventing local weather change are nonetheless key points the place Northvolt can play a major function.
Focusing our scope of actions
As a part of our strategic evaluation, the Northvolt Board has agreed to the next actions:
- In Skellefteå, Sweden, Northvolt intends to position operations at Northvolt Ett Upstream 1 cathode lively materials manufacturing facility into care and upkeep till additional discover. That is motivated by a necessity to streamline working prices, in addition to optimize the sequencing of Northvolt Ett’s ramp-up.
- In Borlänge, Sweden, the Northvolt Fem program on the Kvarnsveden web site might be terminated. The location was acquired by Northvolt in 2022 and was envisioned as a brand new facility for cathode lively materials manufacturing. Northvolt has concluded an settlement for the sale of the location.
- In Gdańsk, Poland, Northvolt goals to guarantee the profitable way forward for Northvolt Techniques, together with Northvolt Dwa, Europe’s largest battery techniques manufacturing facility. To allow this, Northvolt will enter into discussions with potential future companions and buyers that may capitalize the manufacturing of battery techniques and packs.
- In California, United States, Northvolt has already communicated its intention to combine its subsidiary Cuberg and lithium metallic expertise into Northvolt Labs, Sweden.
Impacts on Northvolt’s workforce
The price-saving mechanisms mandatory for Northvolt to fulfill its core goal of focussing on large-scale cell manufacturing will regrettably embody some tough selections on the scale of our workforce to match the wants of a decreased scale of operations. No remaining selections have been made on the exact nature of any resizing. We stay in constructive discussions with the unions, and can make sure that each effort is made to reduce the necessity for redundancies.
“As difficult as this will be, focussing on what is our core business paves the way for us to build a strong long-term foundation for growth that contributes to the Western ambitions to establish a homegrown battery industry,” Peter Carlsson concluded.
Making ready for Northvolt’s future
According to its give attention to large-scale cell manufacturing, Northvolt stays dedicated to NOVO (Sweden), Northvolt Drei (Germany), and Northvolt Six (Canada), and is in shut dialogue with the important thing stakeholders concerned.
Potential revisions to the timelines of those tasks might be confirmed through the fall, together with any additional mandatory cost-saving actions. Within the meantime, work continues on all websites and Northvolt stays grateful for the assist of its authorities and municipal companions throughout all three places.
Northvolt will share extra data because it advances its strategic evaluation course of within the coming weeks and months.
Information replace from Northvolt.
