Volvo Cars is now buying out the troubled Northvolt from the joint venture – the battery factory Novo Energy. However, the factory buildings are at risk of being abandoned.
Volvo has taken over the Gothenburg factory, which until now has been jointly owned with the bankrupt battery company Northvolt. However, the future of the factory is uncertain, as the original plan to produce batteries in collaboration with Northvolt is no longer relevant.
The factory, which is 450 meters long and located on Hisingen in Gothenburg, is complete. Volvo has not yet found an alternative purpose for the building.
The acquisition comes after Northvolt filed for bankruptcy protection in the U.S. last year. Volvo has not disclosed the exact purchase price, but says the deal is not expected to impact the company's finances.
A US probate court must approve the transfer before it finally takes effect.
Volvo has stated that they do not know what the factory will be used for, and that no new investor has emerged who can finance any battery production.
There is a risk that the factory will end up as a ghost factory unless Volvo finds an alternative area of application.
– Volvo Cars taking full ownership of Novo Energy is not expected to affect Volvo Cars' other planned investments or the company's cash flow in general, Volvo said in a press release .
Despite the bankruptcy and the uncertain situation, Volvo and Northvolt have entered into an agreement that opens up the possibility of future cooperation. The agreement describes potential supply opportunities in North America.
Volvo has not written off a future collaboration with Northvolt, but at the moment the focus is on finding a solution for the completed factory in Gothenburg.
Without a clear plan for the future, there is a risk that the factory will remain unused and end up as a symbol of a failed collaboration.
– Volvo Cars and Northvolt AB have also signed a framework agreement that describes how the companies could collaborate in the future, including potential future supply opportunities in North America."
