NOVO Energy develops and manufactures lithium-ion batteries optimized for automotive applications, emphasizing sustainability from material selection to final assembly. Their R&D center in Gothenburg focuses on improving energy density, charging capabilities, and performance. Manufacturing uses automated production lines, advanced quality control, and 100% fossil-free energy, with the gigafactory located adjacent to Volvo Cars’ plant to minimize transportation emissions.
Despite making significant investments in building what was intended to be one of Europe’s most advanced lithium-ion battery manufacturing facilities, NOVO Energy is currently not engaged in any commercial battery production activities (by 2025). The company’s operational status represents a complex situation where substantial physical infrastructure has been developed, but critical production technology remains uninstalled due to the bankruptcy of former technology partner Northvolt and subsequent operational restructuring requirements.
In 2025, NOVO Energy underwent organizational changes after Volvo Cars acquired Northvolt’s stake, including a 30% workforce reduction and business plan revisions. The company continues gigafactory construction in Torslanda, Gothenburg, with revised timelines and production targets.
Volvo Cars became the sole owner in 2025 pending regulatory approvals; Northvolt exited the joint venture. Future collaborations may include battery supply in North America.
