Northvolt set to axe one in five jobs amid falling demand for its batteries as electric car sales stall

Cuts: Northvolt said it would axe 1,600 jobs in Sweden, a quarter of its workforce in its home country

Europe’s leading electric car battery maker will axe as many as one in five jobs as demand for vehicles continues to stall.

In yet another blow to the industry, Northvolt said it would cut 1,600 jobs in Sweden, a quarter of its workforce in its home country. 

Chief executive Peter Carlsson said: ‘While overall momentum for electrification remains strong, we need to make sure that we take the right actions at the right time in response to headwinds in the automotive market, and wider industrial climate.’

The company was once seen as the rising star of European battery production. 

But earlier this month Northvolt said would scale back its commitments and drive down costs in the face of a ‘challenging’ market. 

The Swedish group – which employs around 6,000 globally – has suffered as demand for electric cars slows and production delays plague the industry.

It was also hit when Germany’s BMW cancelled a £1.7billion order of batteries earlier this year. 

Northvolt was founded in 2017 by former Tesla executives Carlsson and Paolo Cerruti.

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