Volvo Cars, Northvolt Form Battery Development and Production JV

Volvo Car Corp. said Monday that it will establish a joint venture with Swedish battery company Northvolt to develop and produce more sustainable batteries, tailored to power the next generation of pure electric Volvo and Polestar cars.
The 50-50 joint venture will initially see the two companies set up a research and development center in Sweden to develop next-generation battery cells and vehicle integration technologies, specifically developed for use in Volvo and Polestar cars. Operations will begin in 2022.
The auto maker, which is owned by China’s Zhejiang Geely Holding Group, said the joint venture will also establish a new gigafactory in Europe with a potential capacity of up to 50 gigawatt-hours a year. The factory will be powered entirely by clean energy and is expected to employ around 3,000 people.
The location of the new plant is yet to be decided but production is scheduled to start in 2026, Volvo said.
“By working with Northvolt we will secure a supply of high-quality, more sustainable battery cells for our pure electric cars,” said Volvo Cars Chief Executive Hakan Samuelsson.
“Working closely with Northvolt will also allow us to strengthen our in-house development capabilities,” he added.
As part of the plans, Volvo Cars will look to source 15 gigawatt-hours of battery cells a year from the existing Northvolt Ett battery plant in Skelleftea, Sweden starting in 2024.
The deal is subject to final negotiation and agreements, Volvo added.

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