"We are still part of a megatrend, but currently, there are headwinds facing that megatrend," said Peter Carlsson at the meeting on Monday.
On Monday afternoon, Northvolt issued a press release detailing several major changes the company will implement. Among other things, the cathode materials production section in Upstream 1 at the Skellefteå factory will be mothballed indefinitely. According to information provided to Norran, hundreds of employees are affected.
The company has also abandoned plans to build a factory for producing active materials in Borlänge and is seeking partners and investors for its facility in Poland.
Norran sought an interview with Northvolt's CEO, Peter Carlsson, but instead, the company's communications director, Matti Kataja, responded to the inquiries.
– It's incredibly difficult to announce a reduction in the number of employees. At the same time, we are doing this in the proper order. We will speak with the unions and conduct negotiations.
On Monday afternoon, an informational meeting was held with Northvolt employees. According to sources for Norran, it was an emergency meeting and it was led by CEO Peter Carlsson, via video link from Skellefteå.
Norran has obtained a recording of the meeting. In the more than 24-minute-long video, Carlsson, speaking in English, discussed several topics. Among other things, he said it had been an "incredibly intense summer."
– I must also, unfortunately, say that the road ahead will also be turbulent for Northvolt, said Carlsson.
– We are forced to make additional painful decisions to secure the company's long-term profitability.
Later in the meeting, he added:
– I understand that this is challenging, and I can say that this is not one of my best days among my series of milestones and experiences at Northvolt. But I believe it's absolutely necessary to ensure that we get through this, and that we come out of it stronger.
Northvolt's financial challenges were highlighted by the company itself in the press release. This was also something Carlsson addressed during the informational meeting. He stated that the way the company is "consuming capital" right now is unsustainable.
At the same time, he emphasized the importance of continuing production and expressed strong belief that Northvolt is part of a "megatrend."
– We are still part of a megatrend, but currently, there are headwinds facing that megatrend, and this forces us to ensure that we protect the company's long-term profitability, said Carlsson.