Swedish battery manufacturer Northvolt has agreed to sell its stake in Novo Energy, its joint battery venture with Volvo Cars, as part of a broader cost-cutting strategy. The company will now explore new supply opportunities in North America while Volvo takes full control of Novo’s operations.
Key Details:
- Stake Sale to Volvo: Northvolt, facing financial difficulties and under U.S. bankruptcy protection, ceased funding for joint ventures in 2024. As a result, Volvo declared a contract breach in October and moved to acquire Northvolt’s stake in Novo Energy.
- Bankruptcy Court Approval Needed: A U.S. bankruptcy court must approve the sale. Financial terms were not disclosed.
- Focus on Core Business: Northvolt is divesting projects in Poland and Norway to sustain its battery production, with key gigafactories planned in Sweden, Germany, and Canada—though some are facing delays.
- Volvo Seeking a New Partner: Volvo has not yet announced a new partner for Novo but remains committed to launching battery production at its Gothenburg factory by 2026.
- North American Expansion: Despite losing its planned battery orders from Volvo, Northvolt sees potential for new supply agreements in North America, particularly at its upcoming Northvolt Six plant in Montreal.