Volvo enters joint venture to develop and produce batteries

Volvo has announced a joint venture with fellow Swedish company Northvolt in the hope of developing and producing its own batteries for its future hybrids and EVs.

The planned Swedish joint venture will be a 50/50 split between the two companies, and will culminate in a new gigafactory being constructed with the capacity of up to 50GWh per year when production starts in 2026.

Volvo has previously stated its intentions to have 50 per cent of its vehicles as full EVs by 2025 with the ultimate aim of 100 per cent electrification in 2030, in line with its Polestar arm which last week teased the Polestar 3 EV, to be built alongside Volvo's EV cars in North America.

2

The next XC40 will utilise batteries developed by Volvo and Northvolt

Initially aiming to source 15GWh of battery cells from Northvolt's existing battery plant in Sweden from 2024, Volvo's chief technology officer, Henrik Green, believes the partnership will help battery development for both parties.

"Developing the next generation of battery cell technology in-house, together with Northvolt, will allow us to design batteries specifically for Volvo and Polestar drivers,", said Green.

"With cells developed in-house for our electric cars, we can focus on giving Volvo and Polestar customers what they want, such as range and short charging times."

Håkan Samuelsson, Chief Executive of Volvo, echoed Green's sentiments.

"By working with Northvolt we will secure a supply of high-quality, more sustainable battery cells for our pure electric cars.

"Working closely with Northvolt will also allow us to strengthen our in-house development capabilities."

The next-generation, all-electric Volvo XC60 will be the first product to use batteries developed and produced by the joint venture.