The partnership intend to form a joint venture to develop and produce sustainable and customised EV batteries
Volvo Car Group has unveiled plans to establish a 50/50 joint venture with Swedish battery company Northvolt to build a new battery gigafactory in Europe.
The new gigafactory is expected to have a potential capacity of up to 50GWh per annum, with production planned to begin in 2026.
Also, Volvo Car Group intends to source 15GWh of battery cells per annum from the existing Northvolt Ett battery plant in Skellefteå, Sweden starting from 2024.
Alongside previously announced battery supply agreements, new partnership with Northvolt is anticipated to address the Volvo Cars’ battery cell requirements in Europe.
Furthermore, the new Gigafactory is planned to be powered by 100% clean energy, and is expected to employ around 3,000 people.
Volvo Car Group chief executive Håkan Samuelsson said: “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.”
As part of the joint venture, the companies will jointly set up a research and development centre in Sweden, with plans to commence operations in 2022.
Built on the battery expertise of both the companies, the R&D centre will develop advanced battery cells.
Northvolt co-founder and CEO 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.”
In February, Northvolt has expanded its battery systems capabilities in Gdańsk, Poland, with a $200m new factory in the country.
The new facility is planned to provide an annual output of 5GWh in the initial phase of development, with potential to expand the capacity to 12GWh in the second phase of the project.