Swedish automotive company, Volvo Car announced a strategic partnership with leading battery company Northvolt for the development and production of sustainable batteries. The new batteries will be tailored to power the next-generation Volvo and Polestar electric cars. Under the partnership, the two companies will also set up a gigafactory, the location of which is undisclosed as of now.
Volvo Car Group and battery-maker Northvolt aim to establish a R&D center in Sweden that will be operational from 2022 and establish a gigafactory having production capacity of 50 gigawatt hours per year by 2026, in Europe. The venture is a critical part of the Volvo’s push to produce and commercialize just fully electric cars by the end of the decade. The R&D center is a first initiative in the joint venture between the two companies and will be built on the expertise of both the companies in battery making. The companies aim to product next-generation, advanced battery cells and vehicle integration systems to power up the next lineup of fully electric Polestar and Volvo vehicles. As a part of the joint venture, Volvo Car group will also be buying an addition 15GWh batteries from Northvolt from 2024 from its first gigafactory that will be built just outside the Arctic Circle in Sweden. Partnership with Northvolt is expected to cater to Volvo Cars’ battery cell needs in Europe and accelerate ambitious electrification plans of the automaker. In addition, the automaker can also drastically reduce environment footprint attributable battery sourcing and vehicle production by producing batteries near its manufacturing facilities in Europe. The new gigafactory is expected to be powered completely by clean energy and is anticipated to generate employment for over 3,000 people. The first battery cells developed in this gigafactory will be for electric success of Volvo’s best-selling XC60 model.
The strategic JV with Northvolt is a crucial factor in Volvo Cars’ goals to become a global leader in the segment of premium electric cars and by 2030 sell only fully electric vehicles. Northvolt, a leader in sustainable batteries, is backed by investor such as Volkswagen and Goldman Sachs and has a market valuation of about USD 12 Billion.
Joseph Gutierrez holds Master’s degree in Business Administration. As an avid day trader, he is a master of technical analysis and writes tirelessly on how stocks are trading. Joseph has extensive knowledge in technical analysis & news writing. He delivers news reports regarding Market category.
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