NOVO Energy

What NOVO Energy does

NOVO Energy AB is a Swedish battery cell and pack manufacturer established in 2022 as a joint venture between Volvo Cars and Northvolt to develop and produce sustainable Li-ion batteries for Volvo's next-generation pure electric vehicles and Polestar models. Following Northvolt's bankruptcy, Volvo Cars acquired full ownership of NOVO Energy in January 2025 by purchasing Northvolt's stake. The company's core product is a planned 50 GWh Li-ion gigafactory under construction on a 55-hectare site in Torslanda, Gothenburg, directly adjacent to Volvo Cars' Torslanda manufacturing plant, with cell-to-body battery construction technology reported to deliver approximately 20% higher energy density and up to 37% lower carbon footprint than conventional designs, and powered by 100% fossil-free energy.

NOVO Energy operated as a wholly-owned, captive OEM-embedded battery manufacturer, with its sole revenue stream being intra-group supply of cells and packs to Volvo Cars for vehicles on the SPA3 platform. Pricing is not publicly disclosed, consistent with its internal-supply model. The company was originally planned to scale to a 3,000-employee workforce, but has undergone repeated restructurings: a 30% workforce reduction in January 2025, a further ~50% reduction in May 2025 following Northvolt's bankruptcy, the July 2025 divestiture of its R&D subsidiary (NOVO R&D) to Volvo Group, and a full operational pause with layoff of all 75 remaining positions announced in January 2026 while Volvo Cars continues to search for a new battery technology partner. The legal entity remains active but operations are suspended; the long-stated ambition to manufacture batteries in Gothenburg is preserved contingent on a partner being secured.

Name

NOVO Energy

Legal name

NOVO Energy AB

Website

https://novoenergy.se

Company type

Private

Founded year

2022

Operating status

Operating

Headcount range

251–500 employees

Short description

NOVO Energy AB is a Swedish Li-ion battery cell and pack manufacturer, wholly owned by Volvo Cars, building a 50 GWh gigafactory in Torslanda, Gothenburg to supply next-generation Volvo and Polestar EVs. Operations were paused in January 2026 and all 75 remaining positions laid off while Volvo searches for a new technology partner.

Ownership category

akta.pro rank

Product category

Electric Vehicle Battery Manufacturing

NAICS

Battery Manufacturing (33591)

SIC

Motors & Generators (3621)

akta.pro primary industry

Battery Cell Manufacturing (EV) (IMACACAB)

akta.pro secondary industry

Battery Pack & Module Manufacturing (EV) (IMACACAA)

Keywords

• Lithium-ion battery cells
• Electric vehicle batteries
• Battery gigafactory
• Automotive battery manufacturing
• Sustainable battery production

Headquarters

HQ city

Gothenburg

HQ country

Sweden

HQ region

Europe

Offices3 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Supply Chain

Revenue model

1. Battery cell and pack sales to Volvo Cars: NOVO Energy was established to develop and produce sustainable batteries exclusively for Volvo Cars and Polestar vehicles. As a captive manufacturer, revenue is generated through intra-company battery supply to the parent company's electric vehicles.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels1 record

Core offering

NOVO Energy is building a first-of-its-kind Li-ion battery gigafactory in Gothenburg, Sweden, to develop and produce sustainable, high-quality battery cells for the next generation of pure electric Volvo cars and Polestar vehicles. The facility has potential annual cell production capacity of up to 50 GWh—enough to supply approximately half a million electric cars per year—and incorporates proprietary cell-to-body battery construction technology paired with 100% fossil-free manufacturing energy. Production was designed to be supplied intra-company to Volvo Cars' adjacent assembly plant, with no external customer channels.

Product overview

NOVO Energy operates as a battery manufacturing company with a primary offering of Li-ion battery production through its Gigafactory in Gothenburg, Sweden. The company was founded as a joint venture between Volvo Cars and Northvolt to develop sustainable battery solutions. The core product is a 50 GWh Gigafactory for producing battery cells for electric vehicles. NOVO R&D, which was previously a subsidiary for cell technology testing and development, has been divested to Volvo Group. The company is currently in an operational pause while searching for a new technology partner following Northvolt's bankruptcy.

Differentiator

Problem solved

Functional benefit

Products and services

• Li-ion Battery Gigafactory First-of-its-kind Li-ion battery gigafactory in Gothenburg, Sweden, equipped with expertise and technology to produce state-of-the-art batteries. Potential annual cell production capacity up to 50 GWh, enabling supply of batteries for approximately half a million electric cars per year. Designed as a captive facility supplying Volvo Cars and Polestar vehicles, powered by 100% fossil-free energy.
• Battery Cell Production Sustainable, high-quality Li-ion battery cell production designed to power the next generation of pure electric Volvo cars and Polestar vehicles. Manufacturing utilizes proprietary cell-to-body battery construction technology for improved energy density and integrates with Volvo's SPA3 vehicle platform. Production is powered by 100% fossil-free energy.

Quantifiable outcome

• 50 GWh potential annual cell production capacity - sufficient for ~500,000 electric cars per year
• +3 more outcomes

Named customers1 record

Segments1 record

Ideal customer profiles1 record

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

One partnership is on record.

• Volvo CarscoreStrategic or Co-development Partner · 29 January 2025Volvo Cars established the NOVO Energy joint venture with Northvolt in 2021. Following Northvolt's bankruptcy, Volvo Cars acquired Northvolt's stake in January 2025, gaining full ownership of NOVO Energy. Volvo Cars continues to operate NOVO Energy as its captive battery manufacturing subsidiary while searching for a new technology partner.

Scale indicators7 records

Recent moves8 records

Expansion highlights5 records

Direct peers

• ACC (Automotive Cells Company): European battery gigafactory joint venture between Stellantis, Mercedes-Benz and TotalEnergies producing Li-ion cells primarily for the founding OEMs — directly comparable to NOVO's captive OEM-supply model and European gigafactory strategy.
• PowerCo (Volkswagen Group): Volkswagen's in-house battery company building gigafactories in Salzgitter and Valencia to supply VW Group EVs — the closest functional analogue to NOVO as a captive OEM cell manufacturer in Europe.
• Verkor: French Li-ion battery gigafactory developer backed by Renault, planning large-scale cell production in Dunkirk for European automotive OEMs — comparable European gigafactory OEM-anchored model.
• Northvolt: Swedish Li-ion battery developer and NOVO's original JV partner before its bankruptcy and restructuring — directly comparable technology and product profile, and the source of NOVO's cell-to-body IP.

Broad incumbents

• CATL: World's largest Li-ion battery cell manufacturer supplying global automotive OEMs including Volvo — sets the competitive benchmark on cost, scale and technology that NOVO would compete against for Volvo's volumes.
• LG Energy Solution: Major Korean Li-ion cell manufacturer with a large European footprint (Wrocław) supplying automotive OEMs — directly relevant incumbent competitor for European OEM cell contracts.
• Samsung SDI: Korean battery manufacturer with a Hungary gigafactory supplying European OEMs (including BMW, Stellantis) — overlapping customer base and product offering with NOVO's target market.
• SK On: Korean Li-ion cell manufacturer with European operations supplying Volkswagen, Ford and other OEMs — relevant incumbent competitor for European automotive cell supply.

Emerging players

• FREYR Battery: Norway-headquartered emerging Li-ion cell manufacturer building gigafactories in the Nordics/US — comparable European gigafactory-stage peer to NOVO with similar scale-up and funding challenges.
• Italvolt: Italian Li-ion gigafactory developer (Scarmagno, originally backed by Britishvolt founder) targeting European automotive customers — comparable European gigafactory build-out profile.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks7 records

Key highlights5 records

Customer concentration

• Facebookfacebook.com/NOVOEnergySWE
• LinkedInlinkedin.com/company/novoenergy

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries2 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about NOVO Energy