Novo Energy confirmed that it will cut all roles at the business. Credit: NOVO Energy AB
Sweden’s Volvo Cars has put operations at its battery venture Novo Energy on hold, pointing to the absence of an external technology partner as the search continues.
The decision follows a period in which activities at Novo Energy had already been significantly reduced.
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It also comes against the backdrop of a broader slowdown across Europe’s battery sector, where multiple projects have been postponed or abandoned in recent years due to escalating costs and softer demand for electric vehicles, reported Reuters.
As a consequence of the operational pause, Novo Energy confirmed that it will cut all roles at the business.
The company has notified relevant trade unions and informed Arbetsförmedlingen, Sweden’s public employment service, of redundancies affecting a total of 75 positions.
“This decision has not been taken lightly but is necessary considering the current situation,” the company said, adding that Novo Energy and its owner “sincerely thank all employees for their efforts in bringing Novo Energy to where it is now”.
Volvo Cars said it continues to pursue its long-term objective of manufacturing batteries for its electric models in the Gothenburg area.
However, the carmaker stressed that progress on this ambition is contingent on securing a suitable technology partner.
According to the company, an extensive search has been under way for more than a year and remains ongoing under Volvo Cars’ direction.
“However, until a new technology partner is secured, Novo Energy can no longer proceed with its operations as previously planned,” the company said in its statement.
Volvo Cars said that while discussions with potential partners are continuing, it is currently unable to provide clarity on when battery production might begin or how the future organisational setup would be structured.
Volvo Cars recently announced that its upcoming electric SUV, the EX60, will be able to travel up to 810 km on a single charge.
The Swedish carmaker has released technical specifications ahead of the model’s planned debut on 21 January 2026.
Volvo Cars described it as the “longest-range” fully electric vehicle it has produced so far.
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