Volvo Cars Takes Charge in Battery Venture Amid Northvolt's Financial Struggles

Volvo Cars has agreed to acquire Northvolt's stake in their joint battery venture, NOVO Energy, after Northvolt's financial difficulties. The venture was established in 2021 to construct a battery factory in Gothenburg. The transaction requires approval from various authorities, including a Texas bankruptcy court.

Volvo Cars has announced its intention to purchase Northvolt's stake in their joint battery venture, NOVO Energy. This move comes amid financial difficulties faced by Northvolt, a Swedish battery maker currently under bankruptcy protection.

The two companies initiated the venture in 2021, aiming to establish a battery production facility in Gothenburg, Sweden. With Northvolt unable to fulfill its obligations under the shareholders agreement, Volvo Cars declared in October it needed a new partner to continue the project.

The acquisition deal requires clearance from several authorities, including a bankruptcy court in Texas. Despite the financial turmoil, Northvolt remains optimistic about future supply opportunities, particularly in North America.

(With inputs from agencies.)