Volvo halted its Gothenburg battery factory and fired 75 workers after failing to find a tech partner.

Volvo Cars has paused construction of its Gothenburg battery factory and laid off all 75 workers after failing to secure a technology partner, despite a year-long search. The project, under the NOVO Energy unit Volvo fully acquired after Northvolt’s 2023 bankruptcy, aimed to supply batteries for Volvo and Polestar. While Volvo reaffirmed its long-term goal of local battery production, it provided no timeline or details on future plans. The setback highlights ongoing challenges for European battery makers, including high costs and competition from China. The EU recently pledged 1.5 billion euros in interest-free loans to support the region’s battery industry.