Northvolt Ends Funding for Cuberg's Final Salaries
Cuberg, a now-closed subsidiary of Northvolt, is struggling to pay its 200 former employees their final salaries after Northvolt 'ended funding,' according to an internal message leaked to the media.
According to The Information, the Swedish battery manufacturer Northvolt failed to pay the former employees of its shuttered Cuberg subsidiary a scheduled final paycheck this month and compensation for their remaining paid time off, as required by California law.
Northvolt appears to have directed managers overseeing the wind-down of Cuberg to sell assets in order to make the final payroll payments. In a private message shared on Oct. 25 among employees and reviewed by The Information, Eric Roth, director of human resources at Cuberg, said Northvolt had “quit funding us, so we’re having to sell assets to pay our people.”
Four former workers told The Information that they were last paid on Oct. 7 and were due a final payment covering the period ending Oct. 19, which they had not received.
In a LinkedIn conversation with The Information, Roth denied not paying their former employees, stating they would not let that happen. “We’re currently pacing payments in compliance with federal and state law and will ensure all of our people are made whole.” Northvolt did not immediately respond to an email from The Information.
Northvolt acquired Cuberg in 2021 as part of its strategy to integrate next-generation battery technology into its operations. However, earlier this year, following a visit by Northvolt CEO Peter Carlsson to San Francisco, Cuberg's co-founder and CEO, Richard Wang, was removed from the company. Just six months later, Northvolt announced Cuberg's closure and the relocation of its research to Sweden, impacting approximately 200 employees at the San Leandro facility.
Founded in 2015 by Stanford University researchers, Cuberg aimed to revolutionize energy storage, particularly for the aviation industry. Their lithium-metal battery technology promises higher energy density and faster charging times than traditional lithium-ion batteries.
Silicon Valley Nordic Beat previously covered auctions where Cuberg sold off equipment from its San Leandro facility. There is currently no information on more upcoming auctions.
The missed payroll occurs as Northvolt struggles to find new financing to save its flagship battery plant in Skellefteå in Sweden.
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