Volvo Cars and Northvolt AB have signed a share purchase agreement relating to Northvolt’s shares in NOVO Energy AB, leading to Volvo Cars taking full ownership of NOVO Energy AB, subject to approval by relevant authorities.
The transaction under the share purchase agreement is subject to clearance from the United States Bankruptcy Court for the Southern District of Texas and the Inspectorate of Strategic Products in Sweden, with both parties responsible for fulfilling agreed prerequisites. The transaction will close once all conditions are met.
Volvo Cars taking full ownership of NOVO Energy is not expected to impact Volvo Cars’ other planned investments or ambitions on cash flow.
Upon completion of the transaction, there are no outstanding claims between the companies.
Additionally, Volvo Cars and Northvolt AB have signed a framework agreement, exploring how the companies could work together in the future, including potential future supply opportunities in North America.
NOVO Energy was established in 2022 to produce battery cells for Volvo. Construction of a 50 GWh cell factory in Gothenburg began in September 2023. NOVO Energy aimed to begin production in 2026, but this late change in partnership raises questions about Volvo’s ability to maintain that timeline.
