Volvo Cars and Northvolt have selected Gothenburg, Sweden, to establish a new battery manufacturing plant, which will commence operations in 2025, complementing a planned R&D center that both companies announced in December.
Construction of the plant will start in 2023 and it will produce battery cells, specifically developed for use in next-generation pure electric Volvo and Polestar cars. The plant will have a potential annual cell production capacity of up to 50GWh, which would supply batteries for approximately half a million cars per year.
The Swedish location of the plant, which will be built in Torslanda, Gothenburg, offers benefits in terms of a direct route into Volvo Cars’ largest car plant, access to infrastructure, a strong pipeline of renewable energy supply and relevant job competences, as well as its proximity to both Volvo Cars’ and Northvolt’s R&D units.
“Our battery cell partnership with Northvolt is key to our strategic ambitions in electrification,” said Håkan Samuelsson, Volvo Cars chief executive. “We are committed to becoming a leader in the premium electric car segment and selling only pure electric vehicles by 2030.
As sustainable production is a central tenet of the partnership between Volvo and Northvolt, the plant will be powered by fossil-free energy, with a focus on driving renewable energy capacity in the region, and will integrate engineering solutions which prioritize circularity and resource efficiency.
Battery production for Volvo Cars’ and Polestar’s fully electric models represents a large part of each car’s total lifecycle carbon emissions. By working with Northvolt, Volvo and Polestar hope to significantly reduce the environmental footprint attributable to battery sourcing and production for their future cars.
“Our new battery plant will support our ambition to have a fully climate-neutral manufacturing network and secure a supply of high-quality batteries for years to come,” added Javier Varela, head of engineering and operations at Volvo Cars. “Through our partnership with Northvolt, we will also benefit greatly from an end-to-end battery value chain, from raw material to complete car, ensuring optimal integration in our cars.”