Volvo Cars will not make any payment to Northvolt for acquiring its 50% stake in their Novo Energy battery joint venture, the Swedish automaker said in its quarterly report on Thursday.
“The purchase consideration rounds to 0 m SEK. The purchase amount has been negotiated as part of a larger settlement with Northvolt, taking many factors into account,” a Volvo spokesperson said.
See also: Volvo Cars to Acquire Northvolt’s Stake in Battery Joint Venture NOVO Energy
The deal, announced last week, gives Volvo full ownership of Novo Energy, which includes a planned battery cell factory in Gothenburg. Northvolt, once seen as Europe’s leading battery startup, has faced financial difficulties and filed for U.S. Chapter 11 bankruptcy protection last November.
A Northvolt spokesperson said the agreement was reached after careful consideration. “The company and its advisers determined that this agreement is in the company’s best interests,” the spokesperson stated.
See also: Scania Steps In to Support Northvolt’s Struggling Battery Production
The Novo Energy factory, originally announced in 2021, was expected to begin production in 2026. However, Volvo has said it will require a new investor to move forward with those plans. Volvo Cars CEO Jim Rowan told Reuters the company has taken steps to preserve the nearly completed building.
“We’ll decide exactly how we use that building in the future, whether we sell it or whether we use it for a different purpose, we’ll figure that out in the months ahead,” Rowan said.
