Volvo Cars and Sweden's largest battery manufacturer Northvolt intend to establish a joint venture to produce batteries for the automaker's electric vehicles.
As part of the cooperation, the companies will create a research and development center that will develop new generation batteries for Volvo and Polestar electric vehicles (Volvo Group's electric vehicle brand). In addition, the companies intend to build a new battery factory with a potential capacity of up to 50 gigawatt hours. The start of production on it is scheduled for 2026. The factory will be built in Europe (a specific location to be determined at a later date) and will operate exclusively on renewable energy sources.
“By working with Northvolt, we will ensure the supply of high quality and environmentally friendly battery cells for our pure electric vehicles,” said Håkan Samuelsson, CEO of Volvo Car Group.
The gigafactory is expected to employ about 3,000 people. The first battery car developed by the joint venture will be the electric successor to Volvo Cars' best-selling XC60.
In March this year, Volvo Cars presented a new strategy for its development, which involves the company's transition to the production of only electric vehicles by 2030. In the coming years, the company intends to launch a new family of electric vehicles. However, they will only be sold online.