Volvo to acquire Northvolt39;s shares in battery JV
Northvolt says it will stop funding the venture
Northvolt is currently seeking funding for itself

STOCKHOLM, Oct 30 Reuters Volvo Cars is seeking to take over Northvolt39;s stake in their Swedish batterymaking joint venture NOVO but will need a new partner to keep plans for a gigafactory on track, the Chineseowned automaker said on Wednesday.

Northvolt, once hailed as Europe39;s best shot at a homegrown electricvehicle battery champion is racing to stay afloat by slimming down and cutting jobs, hobbled by production problems, loss of a major customer contract and a lack of funding.

Europe39;s journey towards selfreliance in EV battery production, crucial for its green transition and independence from Chinese makers, has been hit by volatility with numerous projects being postponed or scrapped.

Northvolt said separately it had decided not to contribute further capital to NOVO at this point in time and was in active discussions with Volvo Cars on the way forward for NOVO Energy.

Evan Hartley, analyst at Benchmark Mineral Intelligence, said the move could be beneficial for the struggling battery maker.

It fits with what Northvolt have been doing over the past few months to cut down their scope from very ambitious plans towards more of a streamlined approach, Hartley told Reuters.

On the flip side this again highlights a position in which a guaranteed customer of theirs is moving away from using Northvolt as a…