Northvolt will cut a large number of jobs and sell or seek partners for its energy storage and materials businesses as Europe’s leading battery hope aims to survive by refocusing on its struggling first gigafactory in northern Sweden.

The Swedish manufacturer, which has raised more capital at $15bn than any other unlisted European start-up, has been heavily delayed by problems at its factory just below the Arctic Circle as well as suffering from European carmakers slowing their plans to move to electric vehicles.

Northvolt said on Monday that it would pause its cathode active material production, selling one site and buying instead from Chinese or Korean companies, as well as seeking a buyer or partner for its energy storage business based in Gdańsk, Poland.