Volvo Cars initiates process to take full ownership of NOVO Energy
Volvo Cars has today notified its counterpart in the NOVO Energy joint venture, Northvolt AB, that Volvo Cars will invoke its redemption rights to acquire Northvolt’s shares in NOVO Energy.
This action follows a breach of the parties’ shareholders’ agreement where Northvolt AB has not fulfilled its financing obligations.
Volvo Cars is evaluating any potential impact these developments could have for NOVO Energy and is investigating future scenarios to protect the investment. The NOVO Energy building could be multifunctional and various options are now being considered on the assumption that Volvo Cars reaches full ownership. Any battery production at NOVO Energy is dependent on third party or other partner involvement.
When Volvo Cars reaches full ownership it is not expected to impact Volvo Cars’ other planned investments or its targets on cash flow.
Volvo Cars has a diversified and resilient battery supply chain and its vehicle roll-out plans will not be affected.
Volvo Cars intends to have a constructive dialogue with Northvolt on the matter.
This disclosure contains information that Volvo Car AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 30-10-2024 09:12 CET.
For further information please contact:
Volvo Cars Media Relations
+46 31-59 65 25
media@volvocars.com
Volvo Cars Investor Relations
John Hernander
+46 31-793 94 00
investors@volvocars.com
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Volvo Cars in 2023
For the full year 2023, Volvo Car Group recorded a record-breaking core operating profit of SEK 25.6 billion. Revenue in 2023 amounted to an all-time high of SEK 399.3 billion, while global sales reached a record 708,716 cars.
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected car brands in the world with sales to customers in more than 100 countries. Volvo Cars is listed on the Nasdaq Stockholm exchange, where it is traded under the ticker “VOLCAR B”.
"For life. To give people the freedom to move in a personal, sustainable and safe way." This purpose is reflected in Volvo Cars' ambition to become a fully electric car maker and in its commitment to an ongoing reduction of its carbon footprint, with the ambition to achieve net-zero greenhouse gas emissions by 2040.
As of December 2023, Volvo Cars employed approximately 43,400 full-time employees. Volvo Cars' head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars' production plants are located in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The company also has R&D and design centres in Gothenburg and Shanghai (China).