Volvo Cars announced Wednesday it will exercise its option to acquire Northvolt’s stake in their joint battery venture, NOVO Energy, after Northvolt was unable to meet its financing commitments.
The joint venture, launched in 2021, aims to establish a gigafactory in Gothenburg, Sweden, focused on producing sustainable batteries for electric vehicles.
“Volvo Cars is evaluating any potential impact these developments could have for NOVO Energy and is investigating future scenarios to protect the investment,” the automaker said in a statement, underscoring its commitment to maintaining project momentum. “Any battery production at NOVO Energy is dependent on third-party or other partner involvement,” Volvo noted, suggesting the possibility of securing alternative partnerships.
NOVO Energy, a key part of Volvo’s shift toward electrification, could face adjustments in its operational plans as Volvo reassesses financing and partnership options to advance the battery production facility.
