Volvo secures battery supply from CATL and LG Chem
Only OEMs that have sufficient supply of battery cells will thrive over the next years as electrification picks up speed. That is why Volvo Cars is proud to announce it has signed long-term multi-billion dollar agreements with CATL and LG Chem to supply lithium ion batteries over the next decade. “The future of Volvo Cars is electric and we are firmly committed to moving beyond the internal combustion engine,” CEO Hakan Samuelsson said in a press release. “Today’s agreements with CATL and LG Chem demonstrate how we will reach our ambitious electrification targets."
LG Chem, the leading South Korean battery manufacturer, already supplies batteries for Volvo's plug-in hybrid models, including the XC60 T8, V60 T8, S90 T8, V90 T8 and XC90 T8. Soon, Volvo's PHEV lineup will welcome a new model, namely the XC40, which is built in Ghent, Belglium. It is also at this Volvo site that Volvo's all-electric XC40 will be built, starting early 2020.
LG Chem was the first Asian supplier to open a battery plant in Europe when it started production at a new Poland facility last year manufacturing cells for Daimler, Porsche, Volvo, Audi, Renault and Jaguar (source: Autonews.com). Its Chinese competitor CATL is expected to start production in Erfurt, Germany, in 2022. The first customer to be served is reportedly BMW.
Today, some OEMs are facing capacity issues due to the lack of sufficient battery supply. Audi has reduced the output of its e-tron in Brussels, Belgium, whereas Tesla is trying to convince Panasonic to double output at the Nevada Gigafactory.