by AFP Employees Writers
Stockholm (AFP) Jan 13, 2026
Swedish automaker Volvo Automobiles mentioned Tuesday that it was pausing operations at a battery manufacturing facility beneath development, dismissing all 75 employees there, after failing to discover a accomplice for the enterprise.
Volvo Automobiles, majority-owned by the Chinese language conglomerate Geely, final 12 months took full management of NOVO Power, a subsidiary it had beforehand shared with Northvolt, a battery maker that went bankrupt in March.
Northvolt’s failure, one of many greatest in Swedish company historical past, highlights the difficulties for EU battery producers dealing with by excessive prices and Chinese language competitors.
Final month, the EU Fee mentioned it will present 1.5 billion euros ($1.76 billion) to help the bloc’s battery producers by means of interest-free loans.
NOVO Power, based in 2021, was to construct a mega battery manufacturing facility supplying Volvo Automobiles and Geely-owned Polestar.
However the enterprise requires an exterior expertise accomplice, which Volvo mentioned it had failed to search out after a search it began final 12 months.
“Till a brand new expertise accomplice is secured, NOVO Power can not proceed with its operations as beforehand deliberate,” Volvo Automobiles mentioned. “Consequently, NOVO Power AB immediately declares layoffs that have an effect on all positions within the firm.”
Volvo Automobiles mentioned it maintained its “long-term ambition to supply batteries for its electrical vehicles within the Gothenburg, Sweden, space”.
But it surely mentioned it was not potential to say when battery manufacturing may begin, “or in what organisational construction this may occur”.
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