On January 13, 2026, NOVO Energy, the battery subsidiary of Volvo Cars, officially announced the suspension of its operations and initiated company-wide layoffs, affecting all positions within the company. The firm has submitted notices to relevant Swedish labor unions and labor market authorities, confirming that the layoffs will cover all 75 existing roles.
The primary reason for NOVO Energy’s operational suspension is the failure to secure a new battery technology partner, which has hindered the company’s ability to advance its planned business activities. Established in 2021, the battery company was initially a 50-50 joint venture between Volvo and the European battery maker Northvolt. Its core plan involved building a battery plant in Gothenburg, Sweden, with an annual capacity of 50 GWh to supply batteries for Volvo’s all-electric vehicle models.
However, financial troubles at Northvolt triggered a chain reaction during business development. In 2025, Northvolt filed for bankruptcy, and Volvo subsequently acquired its entire stake in NOVO Energy at a near-zero cost, becoming the sole owner. Despite this, the loss of critical technical support from Northvolt left NOVO Energy without essential expertise.
In May 2025, NOVO Energy had already conducted a round of layoffs due to the lack of a technical partner, cutting 50% of its workforce while retaining only core technical and factory maintenance teams. The current full-scale layoffs indicate a complete halt in the company’s phased operations.
Public information shows that the construction of NOVO Energy’s battery plant in Gothenburg is approximately 80% complete. However, due to the absence of technical support, production equipment has not been installed. The originally planned capacity target was also reduced from 15 GWh to 5 GWh. With operations now suspended, the plant remains in an uncertain state, effectively stalled.
Source: WeChat Official Account——起点锂电
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