Volvo Cars has announced that it will take full control of NOVO Energy, its battery joint venture with Northvolt. The company has informed Northvolt that it will exercise its right to buy back shares due to a breach of the shareholdersʼ agreement. Northvolt AB has allegedly failed to meet its financial obligations.
Project for a gigafactory in Gothenburg
NOVO Energy was originally established as a joint venture between Volvo Cars and Northvolt to produce high-performance batteries for electric vehicles. In September 2023, the joint venture received approval to build a battery factory next to Volvoʼs plant in Torslanda, Gothenburg. The gigafactory was expected to reach an annual production capacity of 50 gigawatt-hours and to start production in 2026.
Battery production depending on external partners
Volvo Cars is now assessing the potential impact of this development on NOVO Energy and is investigating different scenarios to protect the investment. The company is considering the multi-functional use of the NOVO Energy building, should the full takeover be successful. Future battery production will not be carried out independently, but only with the possible involvement of external partners. According to Volvo Cars, the acquisition will have no impact on vehicle production plans, as the company has a diversified and robust battery supply chain.
