Following announcements earlier this year that Volvo plans to go all-electric with online-only sales by 2030, the company has just shared plans for a new partnership to mass-produce batteries for its upcoming zero-emissions vehicles.
On Monday, Geely-owned Volvo announced a new partnership with Swedish electric vehicle (EV) battery maker Northvolt, both of which will build a new European factory to develop energy cells, according to Yahoo Finance UK. The plant’s location has yet to be revealed, though the companies say it will employ 3,000 people.
After raising $2.75 billion in equity this year, Northvolt also plans to establish a factory within its home country of Sweden.
The production facility, which will largely supply Volvo’s electric brand Polestar, will reportedly be able to produce up to 50-gigawatt hours (GWh) per hour upon beginning production in 2026 – thought to be enough batteries for about 500,000 EVs.
Volvo XC40 Recharge Pricing in Canada Starts at $64,950, Heat Pump is Extra https://t.co/rhZQk4kB0h
— TeslaNorth.com (@RealTeslaNorth) October 23, 2020
Co-Founder and CEO of Northvolt Peter Carlsson 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.” Carlsson continued, “We are proud to become their exclusive battery cell production partner in Europe.”
Northvolt was founded by former Tesla executives, and the company has previously had contracts with companies like Volkswagen, BMW and Scania, with a valuation of roughly $12 billion (8.7 billion Euros).
Along with its ambitious 2030 goals, Volvo is hoping 50 percent of its sales be EVs by 2025.
Tesla is currently constructing a production facility in Grünheide, Germany, while Volkswagen has announced plans to build six new battery factories across Europe.
