Volvo Cars said the two companies have now signed a binding agreement for the venture. The R&D center located in Gothenburg will start operations next year.
see photosCompanies want to make sustainably produced batteries for next-gen electric Volvos
Volvo car and battery maker Northvolt will open a joint research and development center in Sweden as part of a 30 billion crown ($3.3 billion) investment, the carmaker said on Friday. In June, Swedish companies announced plans for a joint venture to develop batteries for electric cars, including setting up a Gigafactory and an R&D center for production. Volvo Cars said the two have now signed a binding agreement for the venture. The R&D center located in Gothenburg will start operations next year.
“Our partnership with Northvolt secures the supply of high-quality, sustainably produced batteries for the next generation of pure electric Volvos,” Chief Executive Hakan Samuelsson said in a statement.
Volvo Cars, owned by China’s Geely Holding, aims to sell 50% of pure electric cars by the middle of this decade and only fully electric cars by 2030.
Northvolt, whose largest shareholder is Volkswagen, said in October that it planned to invest $750 million while expanding its laboratory facility in Sweden.
The Gothenburg-based company expects to confirm a location in Europe for the new Gigafactory, with a potential annual capacity of up to 50 gigawatt hours (GWh) by early 2022.
Volvo’s initial public offering (IPO) on 29 October was the biggest ever in Europe this year.
Northvolt, whose largest shareholder is Volkswagen, said in October that it planned to invest $750 million while expanding its laboratory facility in Sweden.
The lithium-ion battery maker raised $2.75 billion in equity this year to expand capacity at its factory in northern Sweden, which is due to begin production this month.
Aiming to take on Asian players such as CATL and LG Chem, it aims to have a 20% market share in Europe by 2030. It has received contracts worth more than $27 billion from customers including BMW, Scania, Volkswagen, Volvo Cars and more. pole Star.
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