Volvo Cars takes over Swedish battery venture
Volvo Cars is taking over the Novo Energy joint venture it set up with Northvolt but may not make batteries at the plant as originally planned.
Northvolt has struggled with funding and is cutting back on a number of battery manufacturing projects across Europe. The move by Volvo Car, owned by Geely of China, follows a breach of the shareholder agreement where Northvolt has not fulfilled its financing obligations.
The site in Gothenberg, Sweden, started construction in March with (E) 458m funding from the European Investment Bank. It planned to have production of 17MW, or 35m battery cells a year.
However any battery production at Novo Energy is dependent on third party or other partner involvement. Volvo Cars says it is evaluating any potential impact these developments could have for Novo Energy and is investigating future scenarios to protect the investment. The building in could be multifunctional and various options are now being considered on the assumption that Volvo Cars reaches full ownership.
The company says it has a diversified and resilient battery supply chain and its vehicle roll-out plans will not be affected, and it intends to have a constructive dialogue with Northvolt on the matter.
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