Volvo Cars announced on Wednesday that they have reached an agreement to buy out their partner, Northvolt, from their joint battery venture, NOVO Energy. The price of this deal remains undisclosed.
Northvolt, the Skellefteå-based battery company currently undergoing chapter 11 bankruptcy proceedings, and Volvo Cars joined forces in 2021 to build a battery factory in Gothenburg. However, in October, Volvo Cars acknowledged the need for a new partner to ensure the factory project stays on track.
Volvo Cars previously stated their intention to acquire Northvolt's share in NOVO Energy.
A Northvolt spokesperson commented:
– This agreement with Volvo Cars demonstrates continued strong market interest in Northvolt. It also opens up new opportunities to supply batteries to Northvolt Six in Montreal, Canada.
Both Northvolt and Volvo Cars have declined to comment on the financial aspects of this deal.
The agreement still requires approval from various authorities, including the chapter 11 bankruptcy court in Texas.
Novo Energy is also having financial problems and is still only in the startup phase. The company recently announced that 120 employees will be laid off.