Volvo Cars has taken full control of the NOVO Energy by acquiring Northvoltʼs shares in the battery joint venture. The transaction is subject to regulatory approvals, including the approvals of the US Bankruptcy Court and the Swedish Strategic Products Agency. Both companies must meet certain conditions before the sale can be completed. Financial details of the transaction have not been disclosed.
Failing to meet contractual obligations
Northvolt had already stopped financing most of its joint ventures in 2024 in order to focus on its core business of battery production. In October 2024, Volvo Cars declared that Northvolt had failed to meet its contractual obligations, which ultimately led to the decision to acquire the company. At the same time, NOVO Energy initiated cost-cutting measures, including a 30-percent reduction of its workforce.
Further collaboration planned
The long-term future of NOVO Energy is not yet clear. Volvo Cars had already emphasized last year that a new technology partner was needed in order not to jeopardize the planned start of production at the Gothenburg site in 2026. Despite the sale, Volvo Cars and Northvolt will maintain business relations. A framework agreement provides for possible collaboration in North America, particularly in supplying Northvolt Six, an intended battery factory in Montreal.
Sources:
https://northvolt.com/articles/volvocars-northvolt/
https://www.reuters.com/business/autos-transportation/volvo-cars-buys-northvolts-stake-ev-battery-venture-novo-2025-01-29/
