Northvolt to axe 1,600 jobs [Video]

STOCKHOLM –

Northvolt plans to cut 1,600 jobs at its base in Sweden, or about a fifth of its global workforce, as Europe’s biggest hope in the electric vehicle battery market struggles with production problems, sluggish demand and competition from China.

The leader in efforts to build a European automotive battery industry said on Monday it would suspend plans for a large expansion of its Northvolt Ett factory in Skelleftea, northern Sweden.

In an effort to cut costs, Northvolt slimmed down its business earlier this month, departing from its original mission to be an all-in-one shop offering everything from material production and battery making to end-of-life recycling.

With Volkswagen among its owners, Northvolt has led a wave of European startups investing billions of dollars in battery production to serve the continent’s automakers as they switch from internal combustion engines to EVs.

But the Swedish company has struggled with order delays. Problems scaling …