Batteries of the future
If we are to become a fully electric car maker, we’re going to need a lot of high-quality batteries. Which is why we’re now teaming up with fellow Swedish innovators Northvolt.
We’re teaming up with Northvolt, a leading battery firm from Sweden.
By now you all know this: we are heading full speed towards an all-electric future. By 2025, half of our global sales volume will be fully electric Volvos, and by 2030 we aim to offer only pure electric cars to our customers. One crucial component we need to reach those ambitions? Battery cells – which is why today's announcement is so important for our future.
We're teaming up with Northvolt, a leading battery firm from Sweden, to develop and produce high-quality sustainable batteries for the next generation of pure electric Volvo and Polestar cars. An all-Swedish battery powerhouse, if you will, with collaboration that contains several elements.
For example, as part of the plans we'll establish a 50/50 joint venture company, which will include an R&D centre in Sweden that is scheduled to kick off operations next year. Here, we intend to develop state-of-the-art battery cells and related technologies, to make sure that the battery technology is tailor-made and can be seamlessly integrated into those shiny new Volvos and Polestars.
“By working with Northvolt we secure a supply of the highest quality, sustainable battery cells for our pure electric cars”
"Developing the next generation of battery cell technology in-house, together with Northvolt, allows us to design batteries specifically for Volvo and Polestar drivers," explains Henrik Green, our chief technology officer. "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."
But that's not all. Together with Northvolt, we also look to establish a new, Europe-based gigafactory with a potential production capacity of 50 gigawatt hours (GWh) per year. We've yet to determine where exactly this plant will be based, but production is scheduled to start in 2026 and the plant will employ around 3,000 people. Even better: it is planned to be powered 100 per cent by clean energy!
Finally, our collaboration with Northvolt also means that from 2024, Volvo Car Group will source 15 GWh of battery cells per year from the existing Northvolt Ett battery plant in Skellefteå, Sweden. Alongside previously announced battery supply agreements, that means we've now secured the European battery cell needs that will drive our ambitious electrification plans.
The partnership with Northvolt is key to our ambition to become a leader in the premium electric car segment.
"By working with Northvolt we secure a supply of the highest quality, sustainable battery cells for our pure electric cars," said Håkan Samuelsson, our chief executive. "Working closely with Northvolt also allows us to strengthen our in-house development capabilities."
Our partnership with Northvolt also supports our wider sustainability ambitions as a company. Today, the production of batteries for our fully electric cars represents a large part of the total lifecycle carbon emissions of those cars. By working with Northvolt and producing batteries near our car manufacturing plants in Europe, we can reduce the environmental footprint related to battery sourcing and production.
See all the content from our recent Tech Moment, that explains how we’ll achieve our all-electric future.
