The transfer would permit Volvo, which is owned by Chinese language automaker Geely, to equip round 800,000 autos per 12 months. The Swedish battery maker will, in flip, change into Volvo Automobiles’ unique battery cell manufacturing companion in Europe.
As a part of the plans, the aut0maker can be seeking to supply 15 GWh of battery cells per 12 months from the prevailing Northvolt Ett battery plant in Skellefteå, Sweden, beginning in 2024.
The manufacturing of batteries for Volvo Automobile Group’s totally EVs represents a big a part of the automotive’s whole lifecycle carbon emissions. By working with Northvolt, the corporate will be capable to scale back the environmental footprint attributable to battery sourcing and manufacturing for its future vehicles, it stated within the assertion.
“By working with Northvolt we are going to safe a provide of high-quality, extra sustainable battery cells for our pure electrical vehicles,” Håkan Samuelsson, chief govt at Volvo Automobile Group, said in the statement. “Working intently with Northvolt may even permit us to strengthen our in-house growth capabilities.”
Whereas the gigafactory, deliberate to be powered 100% by clear vitality, ought to be sufficient to cowl Volvo’s wants in Europe, the corporate will want related set-ups in China and the US, its two greatest markets.
Electrical successor to Volvo’s XC60 mannequin would be the first automotive to characteristic battery cells developed via the three way partnership, the corporate stated.
The European Union is presently rebuilding automotive provide chains round battery metals, and incentivizing the adoption of EVs.
European Fee Vice President Maros Sefcovic has stated that, by 2025, large-scale battery plants currently under construction will produce cells to energy finally six million electrical autos.
Native automakers are dashing to get entry to sufficient batteries for electrical vehicles, with VW alone planning six gigafactories. The German firm considered the acquisition of Northvolt, Europe’s nice battery hope, for its website in Salzgitter, however determined to make batteries there by itself.
The agency plans to assemble a manufacturing facility in France, Spain or Portugal by 2026 and one in Poland, Slovakia or the Czech Republic by 2027, plus one other two websites at European areas which have but to be recognized.
Based by former Tesla executives, Northvolt is backed by top investors together with Goldman Sachs. The corporate, valued at about $12 billion, has additionally arrange partnerships with BMW and Scania.