Volvo and Northvolt partnering to produce sustainable batteries
Volvo Car Group is seeking a joint venture with Swedish company Northvolt to develop more sustainable batteries for its next-generation pure electric Volvo and Polestar models.
The first step of the partnership includes establishing a research and development centre in Sweden which will become active in 2026 and is expected to employ around 3.000 people. The new European gigafactory will operate on 100% renewable energy with a potential capacity of up to 50 gigawatt-hours (GWh) per year.
The centre will focus on developing next-generation battery cells and also vehicle integration technologies, both specific for Volvo and Polestar cars. Volvo Cars' best-selling XC60 model will be the first car to feature the new battery cells.
The partnership will supply the battery cells necessary for Volvo Cars’ electrification plans to sell 50% pure electric cars by 2025. Additionally, Volvo Cars will take a further step towards its goals for 2030. In March, the Swedish automotive giant unveiled its plan to sell only electric cars by 2030, while Polestar is dedicated to creating a fully climate neutral vehicle by the same year. The partnership will strengthen Volvo Cars' ambition to become a leader in the premium electric car segment and also boost its plans to reduce carbon emissions.
Starting from 2024, Volvo Cars’ plans to source 15 GWh of battery cells from Northvolt's Ett battery plant.
Author: Müfit Yılmaz Gökmen
Picture copyright: Volvo, 2021.