According to a Reuters report on August 20, Swedish battery manufacturer Northvolt announced that it will move its lithium metal battery technology research and development operations from California to its R&D center in Västerås, Sweden.
In a statement, Northvolt said, "This decision is part of Northvolt's strategic review aimed at realigning its expansion plans and consolidating the R&D and industrialization of its battery product portfolio in one location."
Northvolt has faced a series of setbacks, including production delays and the cancellation of a €2 billion ($2.22 billion) order by a customer.
In recent years, international automakers have been seeking to source batteries from outside China, and Northvolt is considered a pioneer in European battery production. Currently, Northvolt produces batteries at a plant in northern Sweden, focusing on the development of lithium metal battery technology. In 2021, the company acquired U.S.-based battery technology company Cuberg, located in California. Since then, Cuberg's workforce has grown from 25 employees to around 200.
Northvolt confirmed to Reuters that the transfer of R&D work will result in the closure of Cuberg, which will help reduce costs, though the company declined to disclose the anticipated savings. Northvolt also confirmed that all of Cuberg's employees will be laid off but encouraged them to apply for open positions in other parts of the company.
In addition to the R&D transfer, Northvolt's ongoing strategic review is expected to address changes to its expansion plans.
In July of this year, Northvolt CEO Peter Carlsson revealed that the company needs to focus on ensuring the successful launch of its blueprint factory in Skellefteå, Sweden. This might lead to the suspension or delay of other plans, including expansion in Sweden and the construction of gigafactories in Germany and Canada. Peter Carlsson stated, "Our previous expansion plans were a bit too aggressive, and this is something we are currently reviewing."
