Finnish battery chemical producer Terrafame announced on Tuesday that it has begun negotiations with employees to reduce costs, which may include job cuts and reduced working hours, as a result of a global slowdown in electric vehicle (EV) demand.
Factors such as limited charging infrastructure and concerns over EV resale values have led to a deceleration in EV sales, impacting demand for battery chemicals.
Terrafame noted that prices for battery chemicals have fallen, mirroring declines in metals like nickel and cobalt, which are essential to battery production.
The company, which employed 826 people as of September, projects that the cost-saving measures may ultimately require a reduction of up to 75 person-years. “The possibility of, for example, layoffs, changes to job descriptions, and shifting to part-time work is also considered in the negotiations,” the company stated.
While Terrafame is facing challenges, CEO Seppo Voutilainen remains confident about long-term prospects. “Despite a temporary market downswing, the electrification of mobility is inevitable. Terrafame is a significant part of the European battery value chain, and we believe in the demand for battery chemicals in the longer term,” he said.
Terrafame has the capacity to produce nickel sulfate for approximately one million electric vehicles annually and claims its nickel sulfate production has one of the lowest carbon footprints in the industry.
