Batteries and EVs are definitely not "easy money."
From Bloomberg, September 23:
- Manufacturer says it will reduce headcount in Sweden by 1,600
- Expansion plans also put on hold amid auto industry headwinds
Sweden’s Northvolt AB will shed 20% of its global workforce and pause its expansion plans to slow cash outflows as the battery-making firm confronts a burgeoning financial squeeze.
The company, which has struggled in its mission to stand up a home-grown supply of electric-vehicle batteries in Europe, said it will reduce its Swedish workforce by 1,600 positions as part of a strategic review that was announced this month.
Read More: Northvolt to Cut Staff, Halt Some Output as EV Demand Falls
The money-saving move comes as Northvolt continues to negotiate a new financing pact with its creditors and investors. The company in January reached agreement on a $5 billion green loan facility, taking its overall debt and equity commitments to more than $13 billion. Lenders have selected investment bank PJT Partners to help advise on options, Bloomberg News reported last week.
The manufacturer’s rapidly mounting challenges have placed at risk Europe’s ambition to build an EV battery-making champion. The company, which earlier this year was contemplating an initial public offering, has come under increasing strain as a production ramp-up faltered, EV demand slowed and battery-cell competition from China intensified.
Northvolt has also faced a string of health and safety concerns ranging from worker deaths and injuries to reports of toxic chemical leaks. Local business daily Dagens Industri reported this month that the company was looking to raise 7.5 billion kronor ($737 million) to make September’s payroll...
....MUCH MORE
A couple days ago the usually supportive Aftonbladet published a story:
Northvolt resembles a hostage drama
Save us or everything will go to hell!
That's the approximate message from Northvolt's management.
The bite is recognizable from the banks during the financial crisis of 2008. There is no reason to go for it....
Our most recent post on Northvolt was September 5's "Portents: Sweden's Northvolt may postpone $5bn Quebec battery plant by up to 18 months".
