Volvo Car AB has decided to acquire full ownership of the NOVO Energy project, a joint venture with Northvolt AB, due to financial difficulties faced by Northvolt. This move highlights the challenges in scaling battery production for electric vehicles, as Northvolt has been unable to meet its financing commitments.
Volvo aims to strengthen its position in battery manufacturing, particularly on Sweden's west coast where the factory will be established. The carmaker's decision to exercise redemption rights signifies a significant change in the partnership, reflecting the industry's ongoing pressures to secure reliable battery supply chains.