The European Commission has proposed to mobilise €8.5 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to help 5,800 workers dismissed after the bankruptcy of Northvolt in Sweden.
Founded in 2016, Northvolt faced major production challenges and global oversupply in the battery market. Its bankruptcy in March 2025 led to nearly 6,500 job losses. Sweden applied for EGF support in June 2025.
The EGF-funded measures aim to help these workers quickly rejoin the labour market and match their skills with emerging industries in northern Sweden.
In addition, the funding will finance measures such as career counselling and guidance, education and training, including support for dismissed workers to launch their own start-up companies.
The total estimated cost of these measures is €14.2 million, with 60% (€8.5 million) covered by the Commission and 40% (€5.7 million) by the Swedish Public Employment Service. The Swedish authorities began supporting workers in October 2024, shortly after the first layoffs. The EGF can retroactively cover these costs.
Next Steps
The EGF proposal now requires approval by the European Parliament and the Council. It needs a simple majority in the European Parliament and a qualified majority in the Council.
Background
Since 2007, the EGF has intervened in 185 cases, allocating €719 million helping more than 175,000 people in 20 Member States.
EGF-supported measures complement national active labour market measures.
