**Volvo Acquires 50% Stake in Novo Joint Venture for Zero Cost Amid Uncertain Battery Factory Plans**
Volvo Cars has announced that it will not pay Northvolt any amount for its 50% stake in the Novo Energy battery joint venture, as detailed in the automaker’s quarterly report. This agreement, reached last week, includes the planned battery cell factory in Gothenburg, although the financial terms were not disclosed. Northvolt, once viewed as a leading contender in Europe’s battery sector, filed for Chapter 11 bankruptcy protection in the U.S. in November of the previous year.
A spokesperson for Volvo stated, “The purchase consideration rounds to 0 million SEK. The purchase amount has been negotiated as part of a larger settlement with Northvolt, taking many factors into account.” Northvolt has not provided any comments regarding the deal.
The Novo battery factory, which was announced in 2021, was expected to commence production in 2026. However, Volvo has indicated that a new investor will be necessary for this to materialize and is currently exploring alternative options for the facility. CEO Jim Rowan mentioned that the building has been wind- and waterproofed to safeguard it while the company deliberates its future use. Construction was nearly complete when Northvolt encountered difficulties last year.
Rowan stated, “We’ll decide exactly how we use that building in the future, whether we sell it or whether we use it for a different purpose; we’ll figure that out in the months ahead.
