Novo Energy, a battery manufacturing initiative launched by Volvo Cars, announced on Monday that it will halve its workforce as part of a major cost-cutting strategy. The decision comes after the bankruptcy of Northvolt, one of Novo’s original partners, leading the company to reassess its operations.
According to a Novo Energy spokesperson, approximately 150 people will be laid off across the company.
In a statement, company CEO Adrian Clarke said, “Although we have made significant efforts to continue our business and find a new technology partner, current economic challenges and adverse market conditions have made it unsustainable to operate at our current scale.”
Novo Energy, in 2021, acquired Volvo Cars and Northvolt It was established with the aim of building a battery production facility in Gothenburg, Sweden, in partnership with another company. In January, the company also reduced its workforce by 30% to cut costs. Despite the recent downsizing, Novo remains committed to battery development in the Gothenburg region with a new partner. The company will continue limited operations while completing the first phase of construction and will continue to evaluate the possibility of returning to full-scale production in the future.
