Volvo Car Group signs long-term partnership with battery maker Northvolt
European automaker Volvo Car Group has also confirmed that it has entered a long-term partnership agreement with battery manufacturer Northvolt to set up a new 50 GWh electric vehicle (EV) battery cell manufacturing facility in the Skellefteå city of Sweden. The main intention is to jointly develop and build the next generation of battery-powered electric Volvo and Polestar cars in a sustainable way. The manufacturing facilities will be powered by 100 per cent renewable electricity.
Under the terms of the partnership deal, the first step will be to establish a new research & development (R&D) center which is expected to begin operations as soon as 2022. The R&D facility will help develop new technologies for battery cells and battery systems for the automaker’s next-generation line of EVs.
Announcing the partnership deal, the automaker said, “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, specifically developed for use in Volvo and Polestar cars.”
The two companies aims to produce 15 GWh of EV battery cells annually, starting sometime in 2024. Those battery cells will be produced at the battery maker’s ETT battery plant in Skellefteå.
However, the main point of the battery joint venture (JV) is essentially a gigafactory with a production capacity of up to 50 GWh of cells per annum. The gigafactory will also be located in Europe, and it will be ready to start production in 2026.
If the aforementioned 15 GWh supply agreement continues to run in parallel to the newly signed JV, the overall battery cell production will jump to 65 GWh per annum.
Volvo also revealed that its first EV that will use the jointly developed battery cells will be a fully-electric successor to XC60 car, and the next-generation EV will most probably be called Volvo XC60 Recharge. While the manufacturer didn’t confirm when the all-electric XC60 Recharge will exactly be launched, it stressed that it will become all-electric sooner than later.
Volvo has pledged to put at least one million electrified vehicles on public roads by the end of 2025. In simple words, the automaker aims nearly half of its sales volume to be fully electric by the mid of current decade. This ambitious commitment shows that Volvo is aggressively embracing green mobility to cut its carbon footprint.