EU Supports Laid-Off Northvolt Workers With EUR 8.5 Million
From the Northvolt Ett battery factory in Skellefteå, Northern Sweden. The Swedish battery manufacturer Northvolt filed for bankruptcy in Sweden in March 2025. (Photo: Lyten).
The EU and Swedish authorities will provide financial aid to laid-off Northvolt workers in Sweden following the battery manufacturer's bankruptcy.
Laid-off workers at the battery manufacturer Northvolt in Sweden will receive millions in support from the EU and Swedish authorities.
The financial aid aims to help laid-off workers re-enter the labour market following the bankruptcy of Northvolt AB earlier this year.
Northvolt employed over 5,000 people in Sweden, most of whom worked at the factory in Skellefteå in Northern Sweden.
Financial aid
In total, laid-off workers are to receive an estimated EUR 14.2 million in support from both the EU and Swedish authorities, states a press release from the European Parliament.
The EU is set to cover 60 percent of the total cost, equivalent to EUR 8.5 million, while Swedish authorities contribute the remaining EUR 5.7 million.
The measure will assist approximately 5,800 workers in re-entering the labour market through personalised career guidance, coaching, allowances, educational training and assistance for starting a business.
The EU support of EUR 8.5 million was approved with 578 votes in favor, 54 against and 30 abstentions, and will be released from the European Globalisation Adjustment Fund for Displaced Workers (EGF).
Battery company Northvolt filed for bankruptcy in Sweden in March 2025 following large losses and operational challenges that affected production capacity.
The company specialized in the production of batteries for electric vehicles to reduce European dependence on Chinese manufacturers, among other things.
As HNN has reported, in August, US-based battery company Lyten entered into an agreement to acquire the remaining Northvolt assets in Europe, including its factory in Skellefteå, Northern Sweden.
Background
- The European Globalisation Adjustment Fund for Displaced Workers (EGF) aims to demonstrate solidarity by supporting dismissed workers and self-employed individuals who lose their employment due to major, unexpected restructuring events provoked by shifts in world trade patterns, globalisation, or global economic crises.
- Under the 2021-2027 EGF regulation, member states can request EU funding when at least 200 workers are made redundant within a specific reference period.
- If an application meets the EGF criteria, the Commission proposes mobilising the funds, which must then be approved by both Parliament and the Council.
- According to the Commission, the EGF has been used in 185 cases since 2007, allocating €719 million to provide help to more than 175,000 people across 20 EU countries.
From the European Parliament.
