Volvo Cars closes Novo Energy battery cell venture after failing to find technology partner
By Eve
Volvo Cars has shut down its battery cell manufacturing subsidiary Novo Energy, citing an inability to secure a technology partner. The Swedish carmaker had launched the unit to develop in-house cell production but will now rely on external suppliers for its electric vehicle battery needs. The closure marks a retreat from vertical integration in battery manufacturing amid broader industry consolidation.
Why it matters: The decision signals that even major OEMs face challenges in building independent cell production, potentially increasing reliance on established battery suppliers and affecting future procurement strategies. For charging infrastructure operators, this underscores the concentration risk in the battery supply chain that underpins the vehicles using their networks.