Peter Carlsson emphasizes that the battery manufacturer must take "the right measures at the right time in response to the headwind on the vehicle market".
"We need to now focus all energy and investments on our core business", writes Carlsson in a press release.
In Skellefteå, the development of the Northvolt One project will be stopped. In Västerås, programs and expansion plans at Northvolt Labs will be slowed down, and at the headquarters in Stockholm, the operations will be reduced.
"Extremely sad"
Despite the announcement, Northvolt remains determined to establish a base for battery production at home, but believes the measure is necessary to adapt to "reality".
"I and all my colleagues at Northvolt will do everything we can to support the colleagues who will eventually leave the company", says Carlsson.
The measures are being taken to reduce costs, reduce the need for capital, and thereby achieve profitability faster, says the CEO to Ekot on Sveriges Radio.
It's extremely sad to have to announce this, but it's necessary for the company's long-term prospects, says Peter Carlsson to the radio.
He admits that it has taken longer than expected to get the company going, but is convinced that the market will increase tenfold in 10-15 years.
This is still the future of electrification, of transformation. Fundamentally, there is interest in investing in this, says Carlsson.
Major problems
He does not want to comment on whether the company has new investors on the way.
We are continuously in dialogue with our investors, and when I have more information, I will come back to this.
A couple of weeks ago, Northvolt announced that it would shut down part of the factory in Skellefteå, with around 300 employees. There has been a lot of turmoil around the company lately, with major problems in getting production started, complaining customers, and financing on shaky ground. People who came to Skellefteå from other countries to work were laid off on the first day – before they even got started.
The government has previously stated that it is not considering providing financial support to the company. Prime Minister Ulf Kristersson (M) reiterated the same message on Monday.
Northvolt was founded in 2016 by current CEO Peter Carlsson and Paolo Cerruti, both with a background at Tesla, as well as financiers Harald Mix and Carl-Erik Lagercrantz.
The goal was to manufacture the world's greenest batteries for use in, among other things, electric vehicles.
The company has since grown rapidly and taken in investments of over 150 billion kronor.
According to the latest quarterly report, Northvolt had 5,850 employees as of the end of 2023, including 2,900 in Skellefteå, 650 in Västerås, 11 in Borlänge, 342 in Poland, 222 in the USA, 35 in Canada, and 34 in Germany.
The company's largest shareholders in percentage (as of December 31, 2023): Volkswagen 21%, Goldman Sachs Asset Management funds 19.2%, Vargas Holding 7.2%, Rocarma 6.7%, Arbejdsmarkedets Tillægspension 5.1%.
Source: Northvolt
