Novo Energy pauses operations, lays off entire workforce
Volvo Cars has announced an operational pause at its subsidiary Novo Energy as it continues the search for an external technology partner to support its battery production plans.
Volvo Cars, the owner of Novo Energy, said its long-term ambition to produce batteries for electric vehicles in the Gothenburg area remains unchanged. However, the initiative requires an external technology partner, and over the past year, Volvo Cars has conducted an extensive search for such a partner. The process continues, led directly by Volvo Cars.
Until a new technology partner is in place, Novo Energy cannot continue operations as previously planned. The decision affects all 75 employees at the company, who have been notified of layoffs. Relevant unions and Arbetsförmedlingen, Sweden’s labour market authority, have been informed.
Volvo Cars stated that the decision was difficult but necessary given the current situation.
The company added that it cannot provide further details at this time on when battery production might start or in what organisational structure it might operate.