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Volvo Cars Pauses NOVO Energy Battery Project, Lays Off 75 Workers

Executives attribute the pause to cost pressures rather than stalled partner talks.

Volvo Cars says it still wants to make batteries eventually, but can't say when or how

Overview

  • NOVO Energy said all activities, including construction of the planned Gothenburg gigafactory, are on hold until a new technology partner is secured.
  • Talks with multiple battery makers remain active, but chair Alexander Petrofski said carrying ongoing costs made continued operations unviable.
  • The decision cuts the remaining 75 jobs, following a workforce reduction in May last year as the project slowed.
  • The venture began in 2021 with Northvolt to supply Volvo and Polestar, and Volvo took full control after Northvolt’s bankruptcy last year.
  • The European Commission announced €1.5 billion in interest-free loans for battery producers last month, and company officials say further support such as credit guarantees would be key to any restart.