- The centre is intended to build on the battery expertise within both companies and develop next-generation, state-of-the-art battery cells and vehicle integration technologies
- The planned joint venture will also establish a new gigafactory in Europe with a potential capacity of up to 50 gigawatt hours (GWh) per year. Production is scheduled to start in 2026
Volvo Car Group intends intends to establish a joint venture with leading Swedish battery company Northvolt to develop and produce more sustainable batteries. As a first step for the 50/50 joint venture, Volvo Car Group and Northvolt aim to set up a research and development center in Sweden that will begin operations in 2022. The partnership and joint venture are subject to final negotiation and agreements between the parties, including board approval.
The center is intended to build on the battery expertise within both companies and develop next-generation, state-of-the-art battery cells and vehicle integration technologies, specifically developed for use in Volvo and Polestar cars.
The planned joint venture will also establish a new gigafactory in Europe with a potential capacity of up to 50 gigawatt hours (GWh) per year. Production is scheduled to start in 2026.
As part of the plans, Volvo Car Group also looks to source 15 GWh of battery cells per year from the existing Northvolt Ett battery plant in Skellefteå, Sweden starting in 2024. Volvo Cars aims to sell 50 percent pure electric cars by the middle of this decade, and by 2030 it aims to sell only fully electric cars.
Håkan Samuelsson, chief executive at Volvo Car Group said, “By working with Northvolt we will secure a supply of high-quality, more sustainable battery cells for our pure electric cars. Working closely with Northvolt will also allow us to strengthen our in-house development capabilities.”
The new gigafactory, planned to be powered by 100 percent clean energy, is expected to employ around 3,000 people. The location of the new plant is yet to be decided. The first car to feature battery cells developed through the joint venture will be the electric successor to Volvo Cars’ best-selling XC60 model.
Peter Carlsson, Co-Founder and CEO of Northvolt said, “Volvo Cars and Polestar are industry leaders in the transition to electrification and perfect partners on the journey ahead as we aim to develop and produce the world’s most sustainable battery cells. We are proud to become their exclusive battery cell production partner in Europe.”
Sell only pure electric vehicles by 2030
The partnership with Northvolt is key to Volvo Cars’ ambition to become a leader in the premium electric car segment and sell only pure electric vehicles by 2030. It also represents an important step in the expansion of Volvo Car Group’s in-house development competence, coupled with partnerships with true technology leaders.
Henrik Green, chief technology officer at Volvo Cars said, “Developing the next generation of battery cell technology in-house, together with Northvolt, will allow us to design batteries specifically for Volvo and Polestar drivers. With cells developed in-house for our electric cars we can focus on giving Volvo and Polestar customers what they want, such as range and short charging times.”
