Written by Cláudio Afonso | LinkedIn | X
Volvo Cars said on Wednesday it signed a purchase agreement with the Swedish battery maker Northvolt to acquire full ownership of their joint venture, Novo Energy.
While not revealing the price of the deal, Volvo Cars added that the acquisition would not affect its planned investments or cash flow ambitions.
Northvolt and Volvo Cars announced the joint venture in 2021, aiming to develop and produce batteries for the carmaker’s electric vehicles.
The Swedish carmaker said the deal requires clearance from the United States Bankruptcy Court for the Southern District of Texas and Sweden’s Inspectorate of Strategic Products.
Earlier this month, NOVO Energy said it would slash 30% of its workforce amid cost reduction plans, citing “evolving market conditions and an amended business plan.”
The companies said they are committed to meeting the necessary conditions, with the transaction expected to close once all approvals are obtained.
Following the deal’s completion, Volvo Cars and Northvolt will have no outstanding claims between them, according to the statement.
In a separate agreement, the two companies signed a framework deal to explore potential future collaborations, including battery supply opportunities in North America.
Volvo Cars sold 763,389 vehicles in 2024, marking an 8% increase compared to the previous year. The growth was fueled by strong demand in Europe, where sales rose by 25% to 369,685 units, accounting for nearly half of the company’s total sales.
This surge allowed the carmaker to offset declines in the U.S. and China, where sales fell by 3% and 8%, respectively.
Volvo Cars sold more than 175,000 battery-electric vehicles (BEVs) in 2024, representing a 54% year-over-year increase. Plug-in hybrid (PHEV) sales also grew by 16% to 177,593 units, bringing the total sales of new energy vehicles—both BEVs and PHEVs—to 46% of all Volvo cars sold globally during the year.
In December 2024, Volvo Cars sold 73,804 vehicles globally, a 3% decline compared to the same month in 2023.
