Volvo Halts Novo Battery Project and Cuts 75 Jobs

[Company Update] Volvo's battery subsidiary, Novo Energy, has suspended operations due to disrupted collaboration and laid off 75 employees.

Core Development: Technical Disruption Halts Project

Novo Energy was jointly established in 2021 by Volvo and Northvolt, originally planning to build a 50GWh battery plant in Sweden. However, following Northvolt's bankruptcy in March 2025, the co-developed solid-state battery project was terminated, putting €230 million in investments at risk. Although Volvo acquired full ownership at a symbolic price, it still cannot bridge the resulting technology gap.

Key Figures: Capacity Halved, Full Workforce Cut

The factory’s main structure is 80% complete but remains unfitted with equipment, reducing its capacity target from 15GWh to 5GWh. After cutting 50% of staff in 2025, the remaining 75 positions across all departments have now been eliminated.

Industry Impact: European Battery Challenges Intensify

Amid slowing EV demand and surging costs, multiple battery projects across Europe have stalled. The industry is urging the EU to strengthen support for domestic battery manufacturing to counter China’s dominant position.