Volvo Announces JV for new Battery R&D Center
Volvo has joined forces with its domestic energy provider to create a research and development center in Gothenburg, Sweden.
Its joint venture with Northvolt is part of a SEK 30Bn ($3.3Bn) investment in battery development and manufacturing. The center, due to become operational in 2022, will create a several hundred jobs in the city and puts the automaker among the few automotive brands to make battery cell development and production part of its end-to-end engineering capabilities.
The move follows on from a partnership tie-up between the two companies earlier this year and both have now signed a binding agreement to create a joint venture for the development and sustainable production of batteries for the next generation of pure electric Volvo cars. The establishment of the R&D center will be followed by the construction of a new manufacturing plant in Europe. It will produce next-generation battery cells, specifically developed for use in Volvo and Polestar cars. The exact location of the plant is expected to be confirmed in early 2022.
Håkan Samuelsson, chief executive for Volvo Cars, said: “Our partnership with Northvolt secures the supply of high-quality, sustainably produced batteries for the next generation of pure electric Volvos. It will strengthen our core competencies and our position in the transformation to a fully electric car company.”
— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_
