US EditionVolvo Cars pauses Novo battery project as partner search drags on
Volvo Cars cut all 75 jobs at Novo Energy due to rising costs and slow electric car demand, pausing battery production amid ongoing technology partner talks.
- On Tuesday, Volvo Cars halted operations at battery startup Novo Energy after sharply scaling back the project as its search for a partner dragged on.
- Escalating cost pressures and the collapse of Northvolt have kept the Novo site in limbo for over a year, Volvo Cars said.
- Novo Energy's pause eliminates the final 75 roles after halving the workforce last year, while Alexander Petrofski said partners ask about EU funding rules and urged more EU support.
- Industry groups have pressed the EU to act amid Chinese dominance, urging support as Brussels recently unveiled an automotive package with incentives, while Volvo Group's Mariestad factory faces heavy delays.
- Attempts to restart facilities continue even as costs and timelines remain uncertain; US startup Lyten is trying to resurrect Northvolt's Skelleftea factory, while Volvo Cars says it still wants to make batteries eventually but cannot say when or how.
27 Articles
27 Articles
Daily Journal
Volvo Cars pauses battery factory after fruitless partner search
Swedish automaker Volvo Cars said Tuesday that it was pausing operations at a battery factory under construction, dismissing all 75 workers there, after failing to find a partner for the business.
Volvo Cars subsidiary Novo Energy was supposed to build a battery factory in Gothenburg, but the road has been fraught with problems. After several notices over the past year, all employees at the factory are now being laid off.
Novo Energy, owned by Volvo Cars, is laying off 75 employees because it has not yet found a new partner for its battery factory in Gothenburg.
In Torslanda, near Gothenburg, the future battery gigafactory of Volvo Cars, carried by the Novo Energy subsidiary, has just been put into "operational pause". This project launched in 2021 with the Swedish Northvolt cell specialist was to supply up to 50 GWh of batteries per year. The equivalent of about 500,000 electric cars, for Volvo, Polestar and other brands of the Geely group, in particular the Gothenburg and Ghent plants. Announced at th…
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