On May 5, 2025, NOVO Energy announced plans to implement cost reduction measures and resize its operations following a thorough evaluation of its business after the bankruptcy of its technology partner, Northvolt.
The company revealed that these actions will lead to a workforce reduction impacting approximately 50% of NOVO Energy’s employees. This reduction is in addition to previous cost-cutting efforts announced in January. All redundancy notices are currently subject to ongoing negotiations with unions in Sweden.
Adrian Clarke, Chief Executive Officer of NOVO Energy, stated, “Despite our best efforts to secure our business and an extensive ongoing search for a suitable new technology partner, the current economic challenges and market conditions have made it impossible to maintain our operations at the current scale. This was an incredibly hard decision to make, and it was not made lightly.”
In addition to workforce reductions, NOVO Energy will continue limited operations as it finalizes the first phase of construction. The company is also exploring potential future scenarios that could allow for the resumption of activities at a larger scale. The primary long-term objective for NOVO Energy remains the production of batteries in the Gothenburg area, in partnership with a new technology collaborator.
These strategic changes come in response to the financial and operational impacts resulting from Northvolt’s bankruptcy, which significantly affected NOVO Energy’s business operations. The current economic environment and shifting market conditions have necessitated these adjustments to ensure the company’s sustainability.
NOVO Energy remains committed to its mission and is actively seeking new technology partners to support its ongoing projects and future growth. The company aims to stabilize its operations and position itself to take advantage of opportunities within the evolving battery technology and electric vehicle markets.
By focusing on essential activities and exploring new partnerships, NOVO Energy seeks to navigate the current challenges and lay the groundwork for future expansion and innovation in the battery industry.
Source: Novo Energy
