Volvo and Swedish battery company Northvolt have announced plans to build a European electric car battery gigafactory by 2026.
It forms part of the Swedish car firm’s commitment to electrification and its plans for half of the cars it sells to be pure electric by the middle of the decade and 100 per cent by 2030.
As a first step in the 50/50 joint venture between the pair, Volvo and Northvolt aims to create a research and development centre in Sweden that will start operations next year. Here, they’ll work together to develop next-generation batteries specifically for use in Volvo and Polestar cars.
“By working with Northvolt we will secure a supply of high-quality, more sustainable battery cells for our pure electric cars,” said Håkan Samuelsson, chief executive at Volvo Car Group. “Working closely with Northvolt will also allow us to strengthen our in-house development capabilities.”
The new gigafactory will be powered by 100 per cent clean energy and employ around 3,000 people. The first car to utilise the new batteries developed through the partnership will be a replacement for Volvo’s popular XC60. The location for the new factory, however, has yet to be decided.
Peter Carlsson, co-founder and CEO of Northvolt, 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.
“We are proud to become their exclusive battery cell production partner in Europe.”