Volvo's Battery Venture Faces Workforce Cut Amid Economic Challenges

Novo Energy, a Volvo Cars venture, plans a 50% workforce reduction post evaluation, due to Northvolt's bankruptcy. Despite efforts to secure a new partner, current economic conditions hinder operations. The focus remains on producing batteries in Sweden's Gothenburg area. Volvo previously took over Northvolt's stake.

In response to economic challenges, Novo Energy, backed by Volvo Cars, announced a significant workforce reduction, aiming to scale down by 50%. This decision follows Northvolt's bankruptcy, which previously co-owned the venture.

The precise number of impacted jobs has yet to be disclosed. CEO Adrian Clarke acknowledged their unsuccessful attempts to find a suitable technology partner, citing current economic and market conditions as key hurdles preventing operational maintenance at its existing scale.

Despite these setbacks, Novo Energy remains committed to producing batteries in Sweden's Gothenburg area. Earlier this year, Volvo Cars assumed full control of the venture after acquiring Northvolt's stake for a nominal fee.

(With inputs from agencies.)