Northvolt, the largest battery company in Europe based in Sweden, announced on the 23rd (local time) that it will lay off 1,600 employees in Sweden.
According to Bloomberg, this corresponds to 20% of Northvolt's global workforce and 25% of its employees in Sweden.
The company will also halt its factory expansion plans in Skellefte?, northern Sweden.
Northvolt initially aimed to be an "all-in-one" company covering everything from battery manufacturing to recycling. However, with the global slowdown in electric vehicle demand and a decline in electric vehicle sales in Europe, Northvolt's key market, the company is facing difficulties.
To make matters worse, competition has intensified with Chinese companies that account for about 85% of global battery cell production, and a €2 billion (approximately 2.9881 trillion KRW) battery supply contract signed with BMW in June was canceled. Additionally, the company is dealing with worker safety issues due to toxic chemical leaks at its factory.
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