Volvo Cars Acquires 50% Stake in Novo Energy Battery Venture for Free, Explores Options for Gothenburg Factory
Volvo Cars will not make any financial payment for its 50% stake in the Novo Energy battery venture, as per the automaker's latest quarterly report. The acquisition, which includes the planned Gothenburg battery cell factory, was finalized last week without disclosure of its value.
Northvolt, once poised to be Europe's leading battery manufacturer, filed for Chapter 11 bankruptcy protection in the U.S. in November 2022. Volvo cited "a larger settlement with Northvolt, taking many factors into account" as the reason for the zero purchase consideration. Northvolt has yet to comment on the matter.
Announced in 2021, the Novo battery factory was scheduled to commence production in 2026. However, Volvo has indicated the need for a new investor for its completion. The company is currently exploring alternative uses for the facility.
Volvo Cars CEO Jim Rowan stated that the Gothenburg factory has been secured to protect it during the decision-making process. Construction was nearing completion when Northvolt's financial troubles emerged last year.
"We'll decide exactly how we use that building in the future, whether we sell it or whether we use it for a different purpose," Rowan explained.