Northvolt Shifts Lithium-Metal Battery R&D from California to Sweden Amid Strategic Realignment
Swedish battery manufacturer Northvolt has announced plans to relocate its research and development (R&D) of lithium-metal battery technology from California to its R&D center in Västerås, Sweden. The move is part of a broader strategic reassessment aimed at consolidating the company's research, development, and industrialization efforts under one roof.
Northvolt's decision follows several recent setbacks, including production delays and the cancellation of a €2 billion ($2.22 billion) order from a customer. In response, the company is realigning its expansion plans to focus on core operations.
In a statement, Northvolt emphasized the importance of centralizing its R&D efforts in Sweden, saying, "This decision is part of Northvolt's strategic assessment to realign its expansion plans and to consolidate the research and development and industrialization of its battery portfolio under one roof."
The move will result in the closure of Cuberg, the California-based battery technology company that Northvolt acquired in 2021. Cuberg's workforce grew from 25 to around 200 employees under Northvolt's ownership. Northvolt has confirmed that all Cuberg employees will be laid off, though they will be encouraged to apply for open positions within other divisions of the company. The shift is also expected to lead to cost reductions, although Northvolt declined to disclose specific savings figures.
This strategic shift is expected to impact Northvolt's broader expansion plans. In July, CEO Peter Carlsson indicated that the company might need to reconsider its aggressive growth strategy to focus on ensuring that its Skellefteå, Sweden, plant is fully operational. This reassessment could lead to the suspension or postponement of other projects, including the expansion of facilities in Sweden and the construction of new super plants in Germany and Canada.
"Our previous expansion plans were a little bit too aggressive, and that's something we're reviewing at the moment," Carlsson said.
