by AFP Employees Writers
Stockholm (AFP) Jan 13, 2026
Swedish automaker Volvo Automobiles stated Tuesday that it was pausing operations at a battery manufacturing facility beneath building, dismissing all 75 staff there, after failing to discover a companion 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 largest in Swedish company historical past, highlights the difficulties for EU battery producers going through by excessive prices and Chinese language competitors.
Final month, the EU Fee stated it could present 1.5 billion euros ($1.76 billion) to assist the bloc’s battery producers via 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 companion, which Volvo stated it had failed to seek out after a search it began final 12 months.
“Till a brand new expertise companion is secured, NOVO Power can now not proceed with its operations as beforehand deliberate,” Volvo Automobiles stated. “In consequence, NOVO Power AB right this moment broadcasts layoffs that have an effect on all positions within the firm.”
Volvo Automobiles stated it maintained its “long-term ambition to provide batteries for its electrical automobiles within the Gothenburg, Sweden, space”.
However it stated it was not attainable to say when battery manufacturing may begin, “or in what organisational construction this would possibly occur”.
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