Volvo Car Group will establish a joint venture with the Swedish battery company to develop, and produce, sustainable batteries for its Volvo and Polestar vehicles. The first step in this collaboration will see the two firms set up a research and development center in Sweden, with operations commencing in 2022. 

It will also establish a new gigafactory in Europe with a potential capacity of up to 50 gigawatt hours (GWh) per year. While the location of the factory has not yet been decided, production is scheduled to begin in 2026. To achieve this goal, Volvo are intending to source 15 GWh of battery cells per year from Northvolt’s battery plant in Skellefteå, Sweden – beginning in 2024. The Swedish OEM also confirmed that the next-generation, fully electric, XC60 will be the first vehicle to feature the new battery technologies developed through the collaboration.

Ultimately, the aim of the joint venture is for Volvo to move battery production closer to its manufacturing facilities in Europe, reducing the carbon emissions attributable to its battery sourcing and production. This aligns with the OEM’s goal of exclusively selling electric vehicles by 2030, as well as Polestar’s own goal to create a climate-neutral vehicle by 2030.

The group will establish a joint venture with the Swedish battery company to develop, and produce, sustainable batteries for its Volvo and Polestar vehicles. The first step in this collaboration will see the two firms set up a research and development center in Sweden, with operations commencing in 2022. 

It will also establish a new gigafactory in Europe with a potential capacity of up to 50 gigawatt hours (GWh) per year. While the location of the factory has not yet been decided, production is scheduled to begin in 2026. To achieve this goal, Volvo are intending to source 15 GWh of battery cells per year from Northvolt’s battery plant in Skellefteå, Sweden – beginning in 2024. The Swedish OEM also confirmed that the next-generation, fully electric, XC60 will be the first vehicle to feature the new battery technologies developed through the collaboration.

Ultimately, the aim of the joint venture is for Volvo to move battery production closer to its manufacturing facilities in Europe, reducing the carbon emissions attributable to its battery sourcing and production. This aligns with the OEM’s goal of exclusively selling electric vehicles by 2030, as well as Polestar’s own goal to create a climate-neutral vehicle by 2030.

More details on Volvo’s future technology roadmap will be revealed at Volvo’s Cars Tech Moment event on June 30. The partnership and joint venture are subject to final negotiation and agreements between the parties, including board approval. 

More details on Volvo’s future technology roadmap will be revealed at Volvo’s Cars Tech Moment event on June 30. The partnership and joint venture are subject to final negotiation and agreements between the parties, including board approval.