Archive · 13 Jan 2026
Volvo Halts Novo Battery Project Amid Cost Pressures
Volvo Cars has stopped working on its battery project called Novo Energy.
This project has been having trouble for over a year because Volvo is looking for a new partner after their old one, Northvolt, stopped working with them.
The main reason for this pause is because it's too expensive to keep running the project right now.
All the remaining workers at Novo Energy will lose their jobs.
Volvo is hoping that the European Union will give them more support to start the project again.
Other companies are also trying to make batteries in Sweden, like a US company called Lyten, which bought a factory from Northvolt.
Volvo Cars has paused operations at its battery startup Novo Energy due to cost pressures and the ongoing search for a technology partner.
The Novo factory has been in limbo for over a year since the collapse of Swedish battery maker Northvolt, which co-founded Novo Energy with Volvo in 2021.
All remaining 75 jobs at Novo are being cut, following a previous reduction of the workforce by half in May last year.
Volvo is seeking additional EU support to revive the project, as financial support and credit guarantees are essential for financing.
Elsewhere in Sweden, US startup Lyten is attempting to revive Northvolt's battery factory in Skelleftea after acquiring the operations last year.
- Who
- Volvo Cars and Novo Energy
- What
- Pausing operations at Novo Energy battery project
- When
- Tuesday (specific date not mentioned)
- Where
- Sweden
- Why
- Cost pressures and ongoing search for a technology partner
- Company
- Volvo Cars
- Project
- Novo Energy
- Location
- Sweden
- Job Cuts
- 75
- Reason for Pause
- Cost pressures and search for partner
- EU Support
- Vital for project revival
- Technology Partner
- Northvolt (collapsed in 2021)
- Current Status
- Operations paused, talks with multiple battery makers ongoing