A major electric vehicle battery factory has been permanently closed, leading to the loss of 75 jobs. The shutdown was confirmed by NOVO Energy, a battery start-up company owned by Swedish automotive giant Volvo Cars.
Volvo's Strategic Shift Leads to Layoffs
According to the supplier, Volvo Cars now requires an external technology partner to produce batteries for its electric cars at the factory, rendering NOVO Energy's operations obsolete. The company stated that this decision directly led to the layoffs.
NOVO Energy released an official statement confirming the difficult move: “As a result, NOVO Energy AB today announces layoffs that affect all positions in the company.” The firm has informed relevant trade unions and notified Arbetsförmedlingen, the Swedish Public Employment Service, regarding the 75 positions being cut.
The company emphasised that the decision was not taken lightly but was necessary given the current circumstances. It extended sincere thanks to all employees for their efforts in building the company.
A Troubled Trend for EV Manufacturers
This closure is not an isolated incident in the volatile electric vehicle sector. It follows the abrupt collapse of Bollinger Motors, a US-based EV manufacturer once valued at approximately $148 million.
Bollinger ceased all business activity in late November 2025, just before the Christmas period, leaving its workforce in limbo. Internal communications revealed that employees were informed of the shutdown on the very same day operations ended, November 21st, 2025.
In a damaging aftermath, workers discovered that payroll had been missed for multiple pay periods. An email from the company's Human Resources Director, Helen Watson, stated: “We received word late last night that the day has arrived, we are to officially close the doors of Bollinger Motors, effective today.”
Industry Implications and Worker Uncertainty
The consecutive closures of NOVO Energy and Bollinger Motors highlight the significant challenges and restructuring occurring within the global electric vehicle and battery supply chain. They underscore the financial and strategic pressures facing companies, even those backed by major manufacturers like Volvo.
For the 75 employees at NOVO Energy, the immediate future involves navigating Sweden's labour market authorities to seek new opportunities. The dual incidents serve as a stark reminder of the job insecurity that can accompany rapid technological and market shifts in emerging industries like electric mobility.
