Northvolt announces 1,600 layoffs in Sweden, insists Quebec EV battery plant won’t be affected

Original Report: www.cbc.ca(full story)

Northvolt, an electric vehicle battery manufacturer, announced 1,600 layoffs in Sweden due to challenges in the automotive market and the broader industrial climate, impacting its global workforce by about 20%. The layoffs will be negotiated with unions and include 1,000 jobs in Skellefteå, 400 in Västerås, and 200 in Stockholm. Despite these layoffs, Northvolt confirmed that its $7 billion plant in Quebec will continue construction, with 60% of excavation complete. The Quebec government has invested $2.9 billion to secure this project, with Ottawa contributing up to $1.34 billion for plant construction and an additional $3 billion in incentives. Opposition politicians in Quebec have expressed concern over the project’s future and the government’s investment, questioning the risks associated with Northvolt as a startup. They also raised issues about environmental assessments related to the project, particularly the lack of transparency regarding the government’s financial plan amid Northvolt’s job cuts. Quebec’s Economy Minister stated that the project will provide financial and environmental benefits, whereas Northvolt’s CEO emphasized the need to focus investments on core business operations. While production is scheduled to start in 2026, ongoing reviews may lead to delays, as Northvolt works to reduce costs and align resources with its existing commitments.