On September 9^th, Northvolt formally announced new cost-cutting measures, with plans to lay off staff and de-prioritise the production of cathode materials and battery storage systems. It will also sell or suspend business units unrelated to its core business in order to get through the current difficulties. The specific measures are as follows:

1. The Upstream 1 cathode materials production facility at the Northvolt Ett gigafactory, will be put into care and maintenance until further notice. The plant will focus on cell production in the coming period.

2. the Northvolt Fem cathode material production project in Kvarnsveden will be terminated. Northvolt has concluded an agreement for the sale of the site.

3. Northvolt seeks to bring in new investors for Northvolt Dwa (battery systems and packs) in Gdansk, Poland.

4. Northvolt plans to merge its California-based subsidiary Cuberg and its lithium technology development into the Swedish Northvolt Labs.

The industry has been anticipating this realignment for some time. Since the end of 2022, the company has been producing battery cells at Northvolt Ett in Sweden. A lack of engineering experience has left the current yield rate far from expectations. This has not only resulted in huge costs but has also made the deliverable battery production insufficient to meet customer needs. Northvolt recorded a huge loss of US$1.2 billion last year, which is about 4.2 times the loss in 2022. One of Northvolt's shareholders, BMW, has cancelled billions worth of orders this year. In addition, the decline in demand for electric vehicles has also indirectly affected investors' expectations for Northvolt.