Northvolt Ett from the air. The picture was taken in early September 2024.
UPDATE: 15:10, Tuesday
Madeleine Eriksson, a senior lecturer at the department of geography at Umeå University, has criticised the approach to Northvolt.
– I believe people have been quite aware of the risks involved, she said.
Eriksson criticized the outdated Swedish perspective on industrial development.
– The conventional thinking is that investing heavily in a large factory will ensure long-term economic stability. However, this outdated approach no longer holds true. We'll find out soon enough if this is a temporary setback or a sign of a broader shift in manufacturing trends.
Eriksson emphasized that green mega-projects are uncommon in our region and present a new challenge for Swedish municipalities.
– Planners and local politicians often struggle to grasp the full context. Time constraints and the need for rapid progress can hinder thoughtful reflection and analysis.
She believed this has led to a 'now or never mentality,' where questioning and deliberation are minimized. The media has also contributed to a one-sided positive image of Northvolt, neglecting to provide sufficient space for risks or critical perspectives.
In 2019, after competing against 20 Swedish municipalities, Northvolt selected Skellefteå as the location for one of Europe's largest battery production facilities. Skellefteå's strong economy played a significant role in the decision.
– There have been numerous concerns surrounding Northvolt's establishment. The relationship has been one-sided, with Skellefteå municipality providing significant support without receiving adequate returns, she said.
UPDATE: 14:30, Tuesday
To help offer practical advice to all newcomers, both Northvolt, ex-Northvolt and non-Northvolt, Welcome House Skellefteå has expanded its opening hours to 08.00 - 17.00 Monday to Friday, and is considering weekend hours.
To accommodate increased demand, they are developing comprehensive Q&A and FAQ documents to address common questions. Upcoming social events include cultural evenings and activities for children. The team is also dedicated to providing practical guidance for newcomers, such as job search assistance and housing information.
UPDATE: 11:25, Tuesday
According to Dagens Industri, the government is prepared to provide comprehensive support to Northvolt, excluding direct financial aid to the company. A crisis team, convened by the ministry of economy, has been tasked with coordinating efforts in response to the announcement.
Sara Modig, state secretary to the minister of energy and industry Ebba Busch, will lead the crisis group.
The group's responsibilities may include reaching out to Germany, Skellefteå municipality, customers, and shareholders. Additionally, they may need to coordinate efforts between various government agencies.
Former finance minister Mikael Damberg (S) called on the government to develop an action plan in response to Northvolt's announcement.
– I expect the government to have a plan in place to support both the affected employees and the municipality, which has made significant investments, he said.
UPDATE: 11:00, Tuesday:
The atmosphere outside Northvolt's gates was somber, mirroring the mood inside the battery factory. Myrielle Kasungo, unsure about her department's fate, expressed sadness and anxiety.
Groups of employees entered and exited the staff entrance, many reluctant to engage in conversation.
– Not a good day, exclaimed a woman, cigarette in hand, before disappearing through the gate.
An anonymous employee maintained hope. When asked if she was worried, she replied:
– Both yes and no. Of course, many are concerned, especially those who have relocated and established new lives here. But if I lose my job, all I'll have to do is find another job.
She believed in Northvolt's potential and emphasized the importance of continued hard work.
– I enjoy my job and hope for the best. I'm optimistic about the future.
Three young men, gathered by a car in the rain, had just finished their shifts.
– Everyone is confused, said one.
– The atmosphere is subdued. No one knows if their job is safe.
A man in a helmet and high-visibility vest stopped.
– It's heartbreaking to think of colleagues who have relocated from other parts of the world and now face uncertainty, he said.
He himself was from another European country.
– We must focus on supporting one another during this time, he added.
An anonymous woman who had just finished her shift expressed sadness.
– Many people are affected. There were and still are high hopes. I believe the initial idea and investment were promising, so today's announcement is difficult, she said.
Inside the factory, the mood was mixed. Some employees were deeply concerned, especially those who had relocated and invested in Skellefteå significantly. Others appeared less affected.
One woman believed her own job was secure. She criticized recent media coverage as overly harsh on management and emphasized employee responsibility.
– We share responsibility for the current situation, she said.
– It's easy to blame management, but employees must also reflect on their own performance. We need to improve our work ethic.
Despite the challenges, she remained hopeful.
– We can still turn things around. With determination, we can recover from this situation.
The construction slowdown at Northvolt has also impacted the contractor housing at Away Group Solbacken.
Approximately 600-700 of the 1,200 rooms are currently occupied.
EMPLOYEE REACTION:
Hanna was one of the employees who gathered for the special meeting on Monday. There she and the others were greeted by the awful news. A thousand employees in Skellefteå will leave.
– It was confusing, because we got the numbers. But we don't know who is affected. We are still waiting for information on who is forced to leave the company and who is not, she says.
Hanna and Adam (not their real names), left their home country two and a half years ago. Adam has worked as a consultant at Northvolt. In May, he was offered a lucrative contract, with double the salary, which he refused, hoping to secure a position at the Stockholm office. Now that time feels distant. Instead, the consulting assignment expired when the company introduced a hiring freeze.
– I feel sad, because I believed in Northvolt. I thought we would build something together. But it didn't turn out that way, he says.
MUNICIPALITY REACTION:
– Both public and private employers in the region are desperately seeking employees, so I hope that many of those who are being laid off will remain here, said Kristina Sundin Jonsson, municipal director in Skellefteå.
– We will now prioritize this effort.
Among those affected are employees who are not EU citizens but are working in Sweden with work visas. These individuals face the risk of deportation if they are laid off, according to Skellefteå municipality.
– Everyone working at Northvolt today is valuable to Skellefteå and Västerbotten, said Lorents Burman (S), mayor.
– The government needs to find solutions to allow those with work permits to stay instead of being forced to leave the country.
Burman described the layoffs as significant, impacting numerous people.
– We will work diligently, in collaboration with other stakeholders, to create opportunities that leverage this expertise within the municipality and the region, he stated.
Burman continued:
– Northvolt operates in a rapidly expanding market, particularly in Skellefteå. The demand for labor and skills is unprecedented in our region.
The municipality will immediately initiate efforts in response to today's announcement.
– Our aim is to minimize the negative impact on individuals affected by the layoffs, said Burman.
Länsstyrelsen, the county administrative board has a coordinating responsibility to ensure that the efforts of the state authorities are carried out effectively.
– The Employment Agency is already activated. Throughout the day, I have been in contact with the three directors general of the Employment Agency, the Agency for Economic and Regional Growth, and the Migration Agency, says Helene Hellmark Knutsson, governor of Västerbotten.
Contact has also been made with the government office.
– It is within our mandate to keep the government informed about needs and what is happening in our county so that we can take the necessary actions and decisions in this situation.
WORKER REACTION:
Aleksandar Kos has already been laid off from Northvolt in Skellefteå and will complete his final shift today at 3pm. Tomorrow, he will depart the city to return home to his family in Serbia.
– I've worked at Northvolt for six months, Kos said.
– As an employee of a consulting company working in Upstream, my lay-off was expected. I'm not particularly surprised or saddened by the news.
Kos, who declined to be photographed, stated that he would continue searching for jobs in Sweden but is unlikely to return to Northvolt.
HR REACTION:
Northvolt plans to collaborate with its partners to mitigate the impact of workforce reductions, particularly at Northvolt Ett and IN Skellefteå.
Internal resources have been mobilized to support affected employees, and a task force has been established with external partners to assist international employees and their families.
"Today marks one of the most challenging periods in our company's history as we navigate the difficult decision to reduce our workforce," said Northvolt's HR manager, Daniela Maniaci, in a press release. "Our top priority is to provide maximum support to all employees, especially those affected by layoffs."
She continued, "By offering support to departing employees, we are committed to a compassionate and caring process, ensuring that everyone receives the necessary guidance for their future endeavors."
UNION REACTION:
"Numerous members of the Akademikerföreningen at Northvolt are facing job insecurity," stated Sveriges Ingenjörer in a press release.
"We, along with other concerned unions, have been engaged in difficult negotiations with the company. It has been a challenging process. Our immediate focus will be on informing and supporting our members,'" said Teodor Mellström, chair of the Akademikerföreningen at Northvolt and a member of Sveriges Ingenjörer.
Given Northvolt's collective agreement, members who lose their jobs can expect support measures such as unemployment benefits, income insurance, and assistance from the Trygghetsrådet. These tailored measures aim to facilitate a smooth transition to new employment.
"Losing a job is a difficult experience, and many members will face significant challenges ahead. Our priority is to provide unwavering support to our members and assist them in securing new employment opportunities as quickly as possible," said Camilla Frankelius, chief negotiator at Sveriges Ingenjörer.
Johan Kreicbergs, head of social policy at Sveriges Ingenjörer, commented in the press release, "For the affected members, this is undoubtedly a devastating blow. However, it's important to note that numerous employers across Sweden are actively seeking engineers. The rapid pace of technological development and the ongoing green transition continue to drive strong demand for engineers."
CONSULTANT REACTION:
A consultant exiting the gates was unaware of Northvolt's announcement. Upon hearing about the extensive layoffs, he expressed shock.
– Now I have to figure out if this will impact me personally, he said.
INITIAL NEWS:
In a press release issued by Northvolt shortly after 1PM on Monday, the company announced that it has conducted a strategic review and decided to lay off 1,600 employees across the entire organization. Of those positions, 1,000 are located in Skellefteå.
They stated that they will focus their resources on "accelerating production in large-scale cell manufacturing at Northvolt Ett."
"These measures are expected to result in approximately 1,600 Northvolt employees being laid off, distributed across Skellefteå (1,000 positions), Västerås (400 positions), and Stockholm (200 positions).
"All lay-offs are subject to ongoing union negotiations," Northvolt wrote in the press release.
Other details of the announcement include:
Work suspended on expansion projects in Skellefteå (DS3 4 and FA2)
– focus purely on DS1 and 2 and path to manufacturing 100,000 cells per week
– Northvolt Ett will have a workforce reduction
– Northvolt labs will be downsized
– Corporate functions will be downsized.
Peter Carlsson has agreed to an interview with Norran after the meeting.