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Volvo, Northvolt shut $3.3B battery provide deal for next-generation EVs

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Volvo Automobiles and Northvolt have closed a $3.3-billion deal that the automaker mentioned secures its provide of sustainable, state-of-the-art battery cells for its next-generation full-electric vehicles.

The three way partnership consists of an R&D middle, which is able to begin operations in 2022, in Gothenburg, Sweden, making Volvo one of many few automotive manufacturers to make battery cell growth and manufacturing a part of its end-to-end engineering capabilities, the automaker mentioned in a assertion. on Friday.

The battery R&D middle shall be joined by a brand new cell manufacturing facility that may produce powerplants for Volvo and its subsidiary, Polestar.

The 2 Swedish corporations are within the ultimate section of choosing a location in Europe for the manufacturing unit, which may have annual capability of as much as 50 gigawatt hours and the flexibility to produce batteries to half one million vehicles a yr by 2026.

The precise location of the plant is predicted to be confirmed in early 2022, with development slated to start out in 2023.

Volvo is investing closely to change into an electric-only model by 2030. A part of that push was the 94-year-old’s firm’s entry onto the Nasdaq Stockholm in October, a transfer that generated 20 billion kronor ($2.3 billion) to assist fund Volvo’s shift away from inner combustion engines.

“We’re the No. 5 or No. 6 largest participant when it come to the present international premium automotive section. We wish to be one of many prime two or three sooner or later premium sector that shall be electrical,” Volvo CFO Bjorn Annwall informed Automotive Information Europe after Volvo’s buying and selling debut.

Volvo goals to have gross sales of 1.2 million vehicles by 2025 and needs half of them to be full-electric fashions.

“Our partnership with Northvolt secures the provision of high-quality, sustainably produced batteries for the following era of pure-electric Volvos,” Volvo CEO Hakan Samuelsson mentioned the assertion. “It should strengthen our core competencies and our place within the transformation to a totally electrical automotive firm.”

Northvolt CEO Peter Carlsson mentioned the companions will construct up “a provide of battery cells which might be made in Europe with a really low carbon footprint and which might be optimized by way of car integration to get the most effective efficiency out of the following era EVs.”

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