In streamlining operations, Northvolt will initially focus on large-scale cell manufacturing whilst reducing costs and exploring future strategic partnerships for the purpose of securing its position in the global battery landscape.

Northvolt is today announcing its initial steps to be taken as part of its strategic review. These measures reflect a challenging macroeconomic environment and our subsequent reassessment of Northvolt’s near-term priorities, leading to a re-scope of operations and appropriate resizing of our workforce.

The strategic review’s core objective is to focus resources on becoming a leader in sustainable large-scale cell manufacturing. This endeavour entails ramping up the first phase of the Northvolt Ett gigafactory, Sweden, whilst continuing to leverage the world-class R&D facility Northvolt Labs, in Västerås, Sweden. This is a key requirement for Northvolt to maintain its position as a leading cell manufacturer in the Western world.

While Northvolt’s challenges remain highly relevant in the short-term, they have not changed the long-term foundations supporting Northvolt’s key value proposition. The competitiveness of transatlantic markets, the regionalization of supply chains, as well as the importance of the battery industry in fighting climate change are still key issues where Northvolt can play a significant role.

"We fully support Northvolt's critical strategic review aimed at strengthening its operational foundation and improving financial stability. Success will depend on the broad adoption of electric vehicles and continued stakeholder support. Despite current challenges, the global shift toward electrification and the long-term prospects for battery manufacturers, including Northvolt, remain strong," says Carl-Erik Lagercrantz, CEO of Vargas Holding.

Read the entire press release here.