Opinion on Proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Sweden – EGF/2025/003 SE/Northvolt

11.11.2025

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on Proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Sweden – EGF/2025/003 SE/Northvolt (2025/0326(BUD))

Dear Mr Chair,

Under the procedure referred to above, the Committee on Employment and Social Affairs has been asked to submit an opinion to your committee and decided to send the opinion in the form of a letter.

The Committee on Employment and Social Affairs considered the matter at its meeting of 11 November 2025. At that meeting, it decided to submit the opinion set out below to the Committee on Budgets, as the committee responsible.

Yours sincerely,

Li Andersson

OPINION

A. Whereas, on 16 June 2025, Sweden submitted an application to mobilise the European Globalisation Adjustment Fund for Displaced Workers (EGF) in accordance with Article 8(1) of Regulation (EU) 2021/691, in respect of workers’ displacements in Northvolt (Northvolt AB) and its subsidiaries as well as in 13 subcontractors, suppliers and downstream producers in Sweden; whereas it was supplemented by additional information provided in accordance with Article 8(5) of the EGF Regulation; whereas the primary enterprise operated in the economic sectors classified under the NACE Revision 2 divisions 71 (Architectural and engineering activities; technical testing and analysis); whereas the redundancies made by Northvolt are mainly located in the NUTS 2 regions of Övre Norrland (SE33), Stockholm (SE11), and Östra Mellansverige (SE12);

B. Whereas Sweden submitted the application under the intervention criteria of Article 4(2), point (a), of Regulation (EU) 2021/691, which requires the cessation of activity of at least 200 displaced workers over a reference period of four months in an enterprise in a Member State, including workers displaced in suppliers and downstream producers and / or self-employed persons whose activity has ceased; whereas, following its assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met;

C. Whereas the application relates to 5 829 displaced workers whose activity has ceased in Northvolt (Northvolt AB) and its subsidiaries, as well as in 8 subcontractors, suppliers, and dowstream producers, within the reference period of four months that runs from 28 November 2024 to 28 March 2025; whereas, in addition to these workers, the eligible beneficiaries also include 657 displaced workers whose activity ceased before or after the reference period; whereas the total number of eligible beneficiaries is 6 486;

D. Whereas on 28 October 2025, the Commission submitted a proposal for a decision on the mobilisation of the EGF in favour of Sweden to support the reintegration in the labour market of 5 800 targeted beneficiaries to the Parliament and the Council;

E. Whereas the event giving rise to these displacements is a major restructuring event concerning Northvolt AB, followed by the bankruptcy of the enterprise on 12 March 2025; whereas in an attempt to establish a European battery industry to reduce dependence on Chinese manufacturers, Northvolt AB was founded by private investors in 2016; whereas a battery factory, called Northvolt Ett, was opend in the municipality of Skellefteå in June 2022, and Northvolt Labs was established as a research campus in the municipality of Västerås; whereas Northvolt Ett had been set-up with the aim to manufacture lithium-ion batteries for electric cars and for storing energy;

F. whereas, however, severe problems in the production process quickly became apparent and during 2023, production in Northvolt Ett was only reaching 0,5 % of its initially planned capacity; whereas due to these delays, major clients of Northvolt saw themselves forced to cancel their orders; whereas, at the same time, Chinese battery producers sold batteries at half price compared to Northvolt, due to state subsidies; whereas as a consequence of the Chinese dominance, and in an effort to be independent from Chinese producers, many world economies also heavily subsidised their own battery production leading to a tremendous oversupply of batteries, with Chinese producers alone capable to meet global demand;

G. Whereas, on 7 August 2025, Lyten, an American start-up company, announced the intention to take over Northvolt's battery production; whereas this transaction is currently under approval by the Swedish authorities; whereas it is currently unclear when production could start again and how many workers could be rehired;

H. Whereas Northvolt’s bankruptcy is the largest bankruptcy in Sweden in modern times; whereas, however, the Swedish authorities expect no major impact in the cities of Västerås and Stockholm, while, with more than 5 000 job displacements, the impact on the city of Skellefteå (population of 36 000 in the city and 77 000 in the municipality) is severe as evidenced by the sharp rise in the unemployment rate from 2.9 % to 8.2 % following Northvolt’s bankruptcy; whereas, therefore, the Swedish authorities decided to focus the EGF assistance on Skellefteå, while the workforce in Västerås and Stockholm will be informed about the possibility of EGF measures, and assistance will be granted upon request;

I. Whereas the EGF shall not exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 amended by Council Regulation (EU, Euratom) 2024/765 of 29 February 2024.

Therefore, the Committee on Employment and Social Affairs calls on the Committee on Budgets, as the committee responsible, to integrate the following suggestions in its motion for a resolution:

1. Recalls that the objective of the EGF is to demonstrate solidarity with, and provide support to beneficiaries; considers that financial contributions from the EGF should be primarily directed at active labour market policy measures and personalised services that aim to reintegrate beneficiaries rapidly into decent and sustainable employment within or outside their initial sector of activity; stresses the importance of preparing and supporting workers for the urgently needed green and digital transitions of the European economy and society; reiterates in this context the important role the Union plays, including through the EGF, in contributing to the financing of necessary qualifications for the just transition in line with the European Green Deal;

2. Agrees with the Commission that the conditions set out in Article 4(2), point (a), of the EGF Regulation are met and that Sweden is entitled to a financial contribution of EUR 8 526 322 under the EGF Regulation, which represents 60 % of the total cost of EUR 14 210 537, comprising expenditure for personalised services of EUR 13 663 977 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 546 560;

3. Is concerned that any delay with regard to supporting workers to find new employment could result in a brain-drain with severe effects on the region, as many workers had moved to Skellefteå in the north of Sweden only for the job at Northvolt; recalls that 29% of the targeted beneficiaries are below 30 years and 68% are between 30 and 54 years old while 64% of them have a tertiary education; highlights, moreover, that 40% of the Northvolt’s workforce were third-country nationals, whose work and residence permits are dependent on their employment;

4. Welcomes the fact that Sweden has indicated that the coordinated package of personalised services has been drawn up in consultation with worker’s representatives and the social partners, in compliance with Article 7(4) of the EGF Regulation;

5. Notes that personalised services to be provided to the workers consist of the following measures: (a) in-depth assessment and individual planning, (b) job-search activities and coaching, (c) support for starting own business, (d) start-up investment support (jobseekers who start their own company will have the opportunity to apply for specific investment support of up to EUR 22 000), (e) labour market training, (f) training courses within the regular education system, (g) Steps to Work (a measure geared at particularly vulnerable beneficiaries that might need special support to access the labour market or pursue education), and (h) allowances (allowance for internships, allowances for those preparing to launch one’s own business, an activity allowance for those actively participating in the training measures offered, a mobility allowance paid to cover travel and removal expenses if new employment is found in another region, travel expenses for the participation in out-of-town job interviews);

6. Stresses in particular the importance of Article 7.2 of the EGF Regulation, which requires the coordinated package to anticipate future labour market perspectives and required skills, which are compatible with the shift towards a resource-efficient and sustainable economy and with a particular focus on the dissemination of skills required in the digital industrial age; course content includes areas such as programmable logic controller (PLC), industrial automation, digital production management, energy-efficient technology and basic programming;

7. Stresses that Sweden has confirmed that the measures supported by the EGF will not receive any financial contributions from other Union financial instruments;

8. Recalls the possibility for special time-limited measures within the coordinated package including, inter alia, to pay childcare allowances, as provided in Article 7.2 b of the EGF regulation to facilitate job seekers’ participation in the activities proposed.