Northvolt Sells Novo Energy Stake to Volvo, Eyes North American Expansion
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.