NOVO Energy, the Volvo-owned battery manufacturer, announced on May 5 that it’s cutting approximately 50% of its workforce as part of a major restructuring effort. Dramatic move comes on the heels of technology partner Northvolt’s bankruptcy and follows a thorough internal review of operations.
The Swedish battery company isn’t shutting down completely, though. NOVO Energy plans to maintain a scaled-down presence while finishing the first phase of its factory construction in Gothenburg. Company stated it will continue evaluating options for potentially restarting full-scale operations in the future.
This isn’t NOVO Energy’s first round of cuts. Back in January, the company already trimmed its staff by 30%. Newest announcement will eliminate an additional 150 jobs, effectively halving the workforce that remained after the earlier reductions.
NOVO Energy was established in 2021 as a joint venture between Northvolt and Volvo, with the goal of creating a dedicated battery manufacturing facility on Sweden’s west coast. Gothenburg plant was positioned to power Volvo’s next generation of fully electric vehicles. Volvo later acquired Northvolt’s 50% stake for a symbolic amount, becoming NOVO Energy’s sole owner.
The Gothenburg gigafactory was originally designed to be among Europe’s largest battery production sites. With planned annual output capacity of 50 GWh—sufficient to supply roughly 500,000 electric cars yearly—NOVO Energy represented a significant piece of Europe’s EV manufacturing strategy.
Now, with these substantial cuts, questions arise about Europe’s ability to establish a competitive domestic battery industry. As NOVO Energy scales back, the continent’s energy independence goals might need recharging.
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