Energy Transition

Embattled Northvolt shifts battery research and development from US to Sweden

Battery and cell manufacturer asks employees at Cuberg subsidiary in California to reapply for jobs in Europe or Canada amid cancellation of huge contract and strategic review

Northvolt Labs R&D facility in central Sweden.
Northvolt Labs R&D facility in central Sweden.Photo: Northvolt
European Editor, Recharge

Battery manufacturer Northvolt is shifting the development of its lithium-metal battery technology from the US state of California to its research and development campus Northvolt Labs in Västerås in central Sweden in a strategic move to consolidate its R&D in one location.

The company has asked employees at its Cuberg subsidiary in the San Francisco Bay Area to reapply to open positions matching their skillset across other locations of Northvolt in Europe or Canada.

“The move strengthens Northvolt's long-term commitment to advanced battery development and better positions it to engage industry first-movers with a technology that holds great promise,” Cuberg CEO Shauna McIntyre said.

Northvolt had bought Cuberg in 2021 amid a break-neck expansion drive that probably was too fast and ambitious for the Swedish battery start-up, which still has completed the construction of only one planned battery giga-factory, at Skellefteå in northern Sweden, where abundant cheap hydro and wind power is available to power the factory.
Other projects are delayed or have been cancelled, such as the Borlänge project to establish another gigafactory at the site of a defunct paper and pulp mill in central Sweden. CEO Peter Carlsson earlier this year had acknowledged to Swedish news daily Dagens Industri that the company “was too aggressive with our expansion plan” that had to be reviewed, while net losses more than tripled to $1.17bn last year.

Another setback came in June, when German carmaker BMW reportedly cancelled a €2bn ($2.2bn) battery cell contract, citing quality issues.

At the same time, Northvolt did go ahead with plans for a second battery factory in northern Germany, albeit amid the promise of lavish subsidies by German state and federal governments.
Doubts are, however, also lingering over Northvolt’s planned deliveries for car giant Volkswagen, one of the Swedes’ largest backers, which according to German car industry publication Automobilwoche has set up a task force due to problems at Northvolt’s battery cell plant in northern Sweden. A slower than expected expansion of e-mobility in Europe doesn't help either.

Downsizing the ambitious North American expansion in such a situation only seems a logical step.

“Bringing lithium-ion, sodium-ion, and lithium-metal technologies together under one roof at Northvolt Labs creates a unique environment for cross-innovation and accelerated development,” the company’s chief development officer Sami Haikala said.

“By centralizing our efforts, we are better equipped to deliver the next generation of energy solutions to meet the growing demands of the global market.”

Shauna McIntyre will remain in a leadership role within Northvolt North America, engaged in expanding the company’s presence in the region, as well as supporting the commercialization of Northvolt's long-term technology roadmap and strategic positions.

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Published 20 August 2024, 07:27Updated 20 August 2024, 07:48
EuropeSwedenAmericasUSNorthvolt