Recently, Volvo Car Corporation has notified Northvolt, the European leader in lithium-ion batteries, of its intention to exercise the call option to acquire the shares Northvolt holds in Novo Energy, and the acquisition process has now been initiated.

Volvo Cars announced the news in a brief statement, indicating that the action is due to Northvolt's breach of the shareholders' agreement and failure to fulfill its financing obligations. Volvo Cars hopes "to engage in a constructive dialogue with Northvolt regarding this matter."

Data reveals that NOVO Energy is a battery joint venture between Volvo and Northvolt, the "Battery King of Europe," with each party holding a 50% stake.
In September 2023, NOVO Energy was granted approval to construct a battery factory adjacent to the Volvo plant in Torslanda, Gothenburg. This super factory is invested with 30 billion Swedish kronor (approximately 20 billion RMB), aiming for an annual production capacity of up to 50 GWh and is scheduled to begin production in 2026.
As of now, Volvo has invested 3 billion Swedish kronor into NOVO Energy, while Northvolt has abandoned the investment, stating it will no longer inject further funds into NOVO Energy.
Volvo has announced a share repurchase, indicating the termination of its partnership with Northvolt on this project. This marks the second subsidiary Northvolt has lost, as it already has one subsidiary that has filed for bankruptcy.
Volvo Car Corporation is currently reviewing the potential impact of the acquisition on NOVO Energy and analyzing various investment protection strategies. Should the full acquisition be successful, Volvo Car Corporation will consider the multifunctional use of the NOVO Energy building.
Volvo Cars announced that future battery production will not be conducted in-house and may involve external partners. "This acquisition will not impact our vehicle production plans, as we have a diversified and robust battery supply chain."

Increasing reports indicate that Northvolt is facing increasingly difficult circumstances.
In terms of performance, Northvolt's loss widened from $284 million to $1.167 billion in the fiscal year 2023, with only $2.1 billion in cash and cash equivalents, a decrease of $400 million from 2022.
Analysts suggest that companies like Northvolt may continue to operate at a loss for several more years.
Local media reports indicate that Northvolt's monthly operational costs are approximately $100 million. The immense financial strain has forced Northvolt to lay off employees and shut down factories to cut down on costs.
Northvolt has announced a layoff plan: On September 23rd, it disclosed a global layoff plan of 20%, affecting 1,600 positions; on September 25th, it also mentioned the possibility of increasing the layoff numbers beyond the initially planned 1,600.
Northvolt Subsidiary Files for Bankruptcy: On October 8th, local time, Northvolt announced that its subsidiary, Northvolt Ett Expansion AB, has filed for bankruptcy with the Stockholm District Court.
Northvolt Postpones Super Factory: Announced the postponement of the new 30GWh battery production capacity project at the Skellefteå Super Factory.
Northvolt loses $2 billion battery supply deal: Automaker BMW cancels its battery procurement contract worth $2 billion with the company, opting instead to award the order to South Korea's battery manufacturer, Samsung SDI...
Swedish media reports that "Northvolt may file for bankruptcy at any moment."