NOVO Energy AB is a Swedish battery development and manufacturing company, established as a joint venture between Volvo Cars and Northvolt. The company focuses on creating sustainable battery solutions specifically designed for the next generation of electric vehicles. Based in Gothenburg, Sweden, NOVO Energy is constructing a state-of-the-art battery gigafactory with a planned annual production capacity of 50 gigawatt hours (GWh), sufficient to power approximately half a million electric vehicles per year. The company combines extensive automotive expertise with advanced battery technology to accelerate the transition toward sustainable transportation solutions.
Battery Technology
NOVO Energy specializes in developing and manufacturing lithium-ion batteries optimized for automotive applications. The company’s battery production processes emphasize sustainability throughout the manufacturing cycle, from material selection to final assembly. Their battery systems are designed to achieve minimal CO2 emissions during production while maintaining high performance and reliability standards.
The company’s research and development center in Gothenburg brings together international experts to advance battery cell technology. This facility focuses on improving energy density, charging capabilities, and overall battery performance. NOVO Energy’s manufacturing processes incorporate advanced quality control systems and automated production lines to ensure consistent product quality.
A distinctive feature of NOVO Energy’s approach is the integration of sustainable practices in battery production. The gigafactory operates on 100% fossil-free energy, significantly reducing the environmental impact of battery manufacturing. The facility’s strategic location adjacent to Volvo Cars’ manufacturing plant enables efficient integration and minimizes transportation-related emissions in the supply chain.
Recent Projects
In January 2025, NOVO Energy underwent significant organizational changes following Volvo Cars’ acquisition of Northvolt’s stake in the company. This transition included a 30% reduction in workforce and modifications to the original business plan. Despite these changes, the company continues to progress with its gigafactory construction in Torslanda, Gothenburg, though with revised timelines and production targets.
Investors
As of January 2025, Volvo Cars has signed an agreement to become the sole owner of NOVO Energy, pending regulatory approvals from the U.S. Bankruptcy Court and Sweden’s Inspectorate of Strategic Products. This development follows Northvolt’s exit from the joint venture. The companies maintain the possibility of future collaborations, particularly regarding battery supply arrangements in North America.
Business Details
Location: Gothenburg, Sweden
Website: https://novoenergy.se
LinkedIn: https://www.linkedin.com/company/77587261
