Volvo Cars to Take Control of Battery Venture as Northvolt Faces Funding Issues

Volvo Cars will exercise its right to acquire Northvolt's shares in their battery joint venture, NOVO Energy, after Northvolt failed to meet financial obligations. While assessing how this impacts NOVO Energy, Volvo is also planning future steps to safeguard its investment. Northvolt has not commented on the situation.

Volvo Cars announced its decision to acquire Northvolt's stake in their joint battery venture, NOVO Energy, due to Northvolt's inability to fulfill its financial commitments.

The joint venture, established in 2021, aims to produce sustainable batteries for electric vehicles, with a gigafactory planned in Gothenburg, Sweden. Volvo is currently assessing the implications for NOVO Energy and exploring strategies to safeguard its investment.

The automaker emphasized that NOVO Energy's battery production depends on third-party involvement. Northvolt has yet to comment on the matter.

(With inputs from agencies.)