“Despite our best efforts to secure our business and an extensive ongoing search for a suitable new technology partner, the current economic challenges and market conditions have made it impossible to maintain our operations at the current scale,” Novo Energy CEO Adrian Clarke said in a statement on May 5.

Novo Energy was established in 2021 with the goal of building a large-scale battery factory in Gothenburg, on Sweden’s west coast. Cost-cutting measures began in January, when the company dismissed 30 percent of its staff. The latest announcement includes an additional 150 jobs to be eliminated, cutting the workforce in half. A Novo spokesperson confirmed the details to Reuters.

Despite the setbacks, Novo Energy maintains that its main long-term objective remains to produce batteries with a new technology partner in the Gothenburg region. A spokesperson for Volvo Cars confirmed that the automaker shares this objective, but declined to provide more specifics about the company’s future plans.

The company said it will continue limited operations while it completes the first phase of factory construction. Novo will also continue to explore potential future scenarios that could allow it to resume full-scale operations.

Earlier this year, Volvo Cars agreed to buy Northvolt’s 50 percent stake in Novo for a nominal sum, a transaction still awaiting final approval. If completed, this would give Volvo full ownership of the battery company.

Northvolt, once hailed as Europe’s most promising battery manufacturer, filed for bankruptcy in March, adding further uncertainty to the sector.

Volvo Cars has also been facing financial headwinds. During the company’s recent quarterly earnings call, its CFO said that no major investments were expected in the near future. According to Volvo’s new CEO Hakan Samuelsson, while construction of the Gothenburg battery plant is nearly finished, no battery manufacturing equipment has been installed yet. Samuelsson also stressed the ongoing need for a technology partner, adding that it may be necessary to share the plant with other brands owned by Volvo’s parent company, Geely.

The post Novo Energy, Volvo’s Battery Venture, to Cut Half Its Workforce Amid Search for New Partner first appeared on Car Zura – Latest Automotive News.

UK finance minister Rachel Reeves emphasized the importance of the investment, stating, “We are going further and faster to boost our industries’ resilience and encourage their growth. This investment in Sunderland will not only further innovation and accelerate our move to more sustainable transport, but it will also deliver much-needed high quality, well-paid jobs.”

Sunderland is already home to the UK’s largest car manufacturing facility, operated by Nissan. In 2023, Nissan announced a major commitment to producing electric versions of two of its models at the site, further solidifying the region’s role in the future of clean mobility.

To finance the new plant, the British government will offer guarantees via the National Wealth Fund and UK Export Finance, unlocking £680 million in financing from a consortium of major banks including Standard Chartered, HSBC, SMBC Group, Societe Generale and BBVA. An additional £320 million has been secured from private investors and new equity from AESC, according to the government’s official statement.

AESC’s CEO Shoichi Matsumoto called the announcement a major milestone, saying, “This investment marks a key milestone in AESC’s ongoing efforts to support the UK’s path towards decarbonization and the expansion of its EV market.”

The funding will support both the construction and future operation of the new gigafactory, a project expected to play a critical role in driving the UK’s transition toward electric vehicles and greener transportation solutions.

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The staff of approximately 900 workers at the facility are set to attend a virtual meeting hosted by Chief Operating Officer Matthias Arleth on May 22. While details remain under wraps, the meeting is described as a regular update by company spokesperson Matti Kataja.

Northvolt’s rapid expansion and ambitious plans for new factories worldwide contributed to mounting costs and operational hurdles, especially at its flagship Swedish site. Once regarded as Europe’s great hope for a homegrown battery industry, the company accumulated around $10 billion in debt and equity since its inception in 2016, ultimately leading to its bankruptcy filing.

Scania, a major Northvolt supporter and one of its largest customers, previously relied on the company for batteries for electric trucks. In April, Scania agreed to purchase Northvolt’s heavy-industry battery unit, acquiring its production assets, R&D center, and a team of about 260 employees. However, Scania’s CEO Christian Levin recently stated that the company has no intention of acquiring the main Skelleftea plant.

Northvolt has reportedly been in talks with Asian competitors regarding potential partnerships. Despite speculation, no rescue deal has been secured, with China’s CATL and South Korean firms showing limited interest. CATL’s founder, Robin Zeng, noted ongoing discussions with creditors but emphasized there are no guarantees and that resources are limited.

The bankruptcy of Northvolt follows a pattern of setbacks for Europe’s battery ambitions. Britishvolt, another high-profile startup, collapsed last year before its planned gigafactory in Blyth could begin operations. Meanwhile, Asian battery giants continue to expand their presence in Europe.

Northvolt filed for Chapter 11 bankruptcy in the U.S. in November, citing $5.84 billion in debt. A temporary $245 million funding injection from Scania bought the company some time, but a long-term solution has remained elusive. Major shareholders such as Volkswagen Group, Goldman Sachs Asset Management, and Vargas Holding have already written down their investments in the troubled firm.

The potential closure of the Skelleftea factory threatens to leave lasting consequences for the local community, which has invested heavily in developing the site and its surrounding industrial ecosystem. City Director Kristina Sundin Jonsson warned that the loss of production would have a significant short-term impact on Skelleftea, which had become a magnet for new residents and related industries in recent years.

The post Northvolt Faces Shutdown of Swedish Factory Amid Bankruptcy and Lack of Buyers first appeared on Car Zura – Latest Automotive News.

“I’m hoping we can help,” Norcross stated in an interview, adding, “We’re going to do everything we can to help, and we will lobby where we have to lobby, and we will do what we can to keep the plant moving forward.”

Honda announced that it will delay its plans to build a new battery facility and retool its vehicle assembly line in Alliston, Ontario, for about two years. The company cited current market conditions and a weakened outlook for electric vehicle sales as the main reasons for the pause. The delay marks the largest such postponement in Canada linked to slowing EV demand and comes as Honda anticipates profit losses due to new U.S. tariffs.

Norcross noted that the municipality has been working closely with Honda, as well as with the Ontario and federal governments, to ensure the project’s progress. He praised Honda’s partnership over the past four decades and highlighted the company’s ongoing support for the local community.

“We all have been working collaboratively and collectively together to make sure we push this project as quick as we could,” Norcross said. “We are thrilled, though, that Honda is keeping their existing operations and the current plant running, securing local employment.”

While the labor union Unifor does not represent Honda workers in Alliston, it does represent many workers in the automotive supply chain and voiced deep concerns about the broader impact on jobs. Unifor’s national president, Lana Payne, criticized the recent U.S. tariffs and changes in EV policies, describing them as “economic sabotage” that threatens Canadian manufacturing and communities.

Ontario Premier Doug Ford said that Honda has reassured him of its commitment to the expansion project. “I’ve talked to Honda, and they’ve promised us they’re going to continue with their expansion,” Ford stated, expressing confidence that future trade negotiations could benefit Ontario’s auto sector.

Opposition leaders, however, raised concerns about the province’s current strategy. NDP Leader Marit Stiles called for more incentives for electric vehicles in Ontario, such as purchase rebates and more charging infrastructure, while also demanding stronger measures to prevent companies from withdrawing investments.

Liberal Leader Bonnie Crombie warned that focusing too heavily on the EV supply chain could leave Ontario vulnerable if the market slows down, stressing that the current pause represents a loss of 1,000 potential jobs and highlighting the need for economic diversification.

The post Ontario Community Holds Out Hope for Honda EV Plant Despite Delays first appeared on Car Zura – Latest Automotive News.

The legal action specifically targets Trump’s decision in February to pause the approval of funds for the National Electric Vehicle Infrastructure Formula Program. This initiative was designed to help pay for the installation of EV chargers, especially along the country’s interstate highways. State officials say that suspending the program jeopardizes their ability to expand charging networks, making it harder for consumers to access electric vehicles, slow progress in tackling climate change, and threaten jobs in green industries.

“This action will devastate the ability of states to build the charging infrastructure necessary for making EVs accessible to more consumers, combating climate change, reducing other harmful pollution, and supporting the states’ green economies,” the states said in their suit, which was filed in a Seattle court.

The U.S. Department of Transportation has not yet responded to the lawsuit. Meanwhile, in February, a coalition representing carmakers and EV charging firms called on the government to quickly restore funding, highlighting how vital these resources are for continued growth in the sector.

Since taking office in January, Trump has moved to reverse several policies introduced by his predecessor, President Joe Biden, which promoted the shift away from fossil fuels and supported clean energy. He has advocated for increased coal use, more domestic oil production, and has undone several high-profile initiatives, including a 2021 Biden order aiming for half of all new cars sold in the U.S. to be electric by 2030.

Trump has also called for an end to state-level zero-emission vehicle regulations and stopped funding for California’s high-speed rail project, further distancing his administration from previous clean energy goals.

The post Seventeen States Sue Trump Over Halted EV Charger Funding Program first appeared on Car Zura – Latest Automotive News.

A 5-Minute Game Changer

Unveiled at a March 17 event in China, BYD’s Super e-Platform aims to redefine what fast charging really means. Equipped with flash-charging batteries, a new 30,000 rpm electric motor and advanced silicon carbide power chips, the platform enables charging at a rate of one megawatt. According to BYD, that translates to 400 kilometers (249 miles) of range in just five minutes faster than any current EV charging solution available at scale.

How It Compares to the Competition

• Tesla Supercharger: Adds 275 km in 15 minutes
• Mercedes-Benz CLA EV: 325 km in 10 minutes
• Li Auto (CATL battery): 500 km in 12 minutes

BYD’s system easily outpaces even its domestic rivals and far exceeds what legacy automakers currently offer.

The Technology Behind the Speed

This next-gen charging feat is enabled by a fully liquid-cooled charging terminal paired with BYD’s proprietary silicon carbide chip the highest-voltage automotive-grade chip in the industry at 1,500V. The battery cell itself features ultrafast ion channels, which cut internal resistance in half, allowing electricity to move with greater ease. Additionally, a new high-performance motor contributes to overall power efficiency while reducing weight and size.

Beyond the Battery

It’s not just about raw speed it’s also about integrated performance. BYD has tailored the platform to optimize power delivery across the battery, motor, and other vehicle systems like air conditioning. The Han L sedan, one of the first models to feature the technology, is being likened by the company to a Formula E race car in terms of power density and speed.

Safety and Infrastructure Challenges

Rapid charging at this scale raises questions about safety and durability. Tsinghua University professor Ouyang Minggao has warned that high charging currents could lead to battery overheating, especially in older cells not designed for extreme loads. Moreover, the jump from 400V to 1,000V systems could add as much as 4,000 yuan ($550) to the cost of a vehicle, according to estimates from Guotai Junan Securities.

Another hurdle? The power grid. Many local grids aren’t equipped to handle megawatt-level draws. This is why BYD and competitors like Xpeng are working on proprietary energy storage systems at charging stations to ease the burden.

Addressing Range Anxiety

Chairman Wang Chuanfu acknowledged that, despite recent technological strides, charging anxiety remains a critical barrier to wider EV adoption. Ultrafast charging could be the key to finally putting that fear to rest.

“Fast charging reduces the psychological resistance many consumers have toward EVs,” said Vincent Sun, analyst at Morningstar. However, he cautioned that infrastructure compatibility especially for such high-voltage charging is still a major limitation.

Rollout Plans

Initially, BYD’s flash-charging platform will be available only in China. The Han L and Tang L will be the first to incorporate it, with presales already underway and official launches scheduled for April. BYD also plans to construct over 4,000 high-power charging stations nationwide.

Battery Swapping or Fast Charging?

The move also challenges the battery-swapping approach favored by companies like Nio, which has established over 3,200 swap stations worldwide. In BYD’s view, the convenience of charging in minutes may render battery swapping less relevant especially in closed-ecosystem models where interoperability is limited.

What About Solid-State Batteries?

Solid-state batteries are often touted as the next frontier in battery technology due to their safety profile and resistance to overheating. However, they remain costly to produce, struggle in cold environments, and often suffer from durability issues related to charge cycles. For now, BYD’s liquid-based ultrafast-charging solution appears more viable for mass production.

Pricing and Availability

• Han L sedan: Starting at 270,000 yuan
• Tang L SUV: Starting at 280,000 yuan

Both models will also be equipped with BYD’s latest “God’s Eye” smart driving technology, offering an extra layer of appeal to tech-savvy buyers.

A New Benchmark in EV Charging

BYD’s flash-charging technology is a significant step forward not just for the company, but for the EV industry as a whole. While challenges remain in terms of safety, grid infrastructure and global rollout, the platform sets a new benchmark in performance and convenience. If the company can overcome those hurdles, it may have found a winning formula to drive broader EV adoption five minutes at a time.

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