Battery manufacturer Northvolt was to run the joint venture Novo Energy together with Volvo Cars, but Northvolt's bankruptcy put a damper on the plans.
A total of 75 people are now being laid off - which are all positions in the subsidiary.
"While Volvo Cars continues to search for a new technology partner, it is currently not possible to share further details about when battery production may start or under what organizational structure this may occur," Novo Energy writes in a press release.
The Swedish Union of Engineers announces that the news was received with sadness - both for the sake of their own members and for Gothenburg and Western Sweden in general.
"It is a plan for the development of new technology in the automotive industry and a future investment for Gothenburg that has come to an end, at least within the framework of the company Novo Energy," says Katarina Atterström, unit manager in Gothenburg at the Swedish Engineers' negotiation department, in a written comment.
Almost half of the 75 people laid off are members of the union.
