Volvo Halts Novo Energy Battery Project, Cutting 75 Jobs

Hit by cost pressures and difficulties in finding partners, Novo Energy—a battery startup under Volvo Cars—suspended operations on January 13. The venture was jointly established in 2021 by Volvo and the now-defunct Swedish battery company Northvolt. Over the past two years, its operations have steadily shrunk due to slowing electric vehicle demand and soaring costs. The Novo factory has been idle for more than a year, and the remaining 75 jobs will now be cut, following an earlier round of layoffs that halved its workforce in May last year. Alexander Petrofski, Chairman of Novo, stated that the suspension was primarily due to unsustainable costs rather than failed negotiations, emphasizing that EU financial support and credit guarantees for domestic battery production are crucial for any potential restart of the project. Meanwhile, the European Union is advancing a new automotive initiative to bolster its local battery industry.