Volvo Cars announced on Thursday that it will exercise its repurchase right to acquire shares in the battery joint venture Novo Energy, which it co-operated with Northvolt, due to Northvolt's failure to fulfill its financial obligations. The financial situation of Swedish battery manufacturer Northvolt has deteriorated for weeks, and Volvo has clearly stated that it will not produce battery cells alone, but only in cooperation with partners. The future development of the joint venture is currently unclear. The production hall under construction can achieve multiple functions, but all options are based on the assumption that Volvo fully owns it.

Volvo Cars will not purchase battery cells from the joint venture. Production originally scheduled to begin in 2026 may be delayed and carried out with new partners. However, Volvo emphasized that it has a diversified and resilient battery supply chain, and its car launch plans will not be affected.