Volvo Cars seeks to oust Northvolt from EV battery venture

Volvo Cars CEO Jim Rowan announced that the company will not be investing any more money into Northvolt, a struggling battery maker. Volvo Cars is looking to take over Northvolt’s stake in their joint venture, NOVO, but will need a new partner to continue plans for a gigafactory. Northvolt has been facing challenges including production issues, loss of contracts, and funding shortages. The move could benefit Northvolt by streamlining their operations, but it also highlights the risk of losing a major customer. Volvo Cars has battery supply deals with other companies like LG and CATL. The NOVO Energy battery plant was expected to cost $2.8 billion and production was scheduled to start in 2026. Volvo Cars has invested around $3 billion into the joint venture so far. Global automakers, including Volvo, have been adjusting their electrification goals due to various challenges in the industry. Northvolt is currently in talks with investors and lenders to secure funding. Volvo Cars CEO Jim Rowan emphasized that the company will not be providing any additional funding to Northvolt.