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Volvo and the battery manufacturer Northvolt, also located in Sweden, open 2022 a joint research and development center in Gothenburg. The new institution is part of a comprehensive investment package of 30 billion Swedish crowns (around 2.93 billion euros) that the battery development and production should drive forward. Thus, Volvo also integrates the battery cell production into its technical portfolio.
After both companies had already announced a close partnership at the beginning of the year, Volvo and Northvolt agreed to establish a joint venture for the development and sustainable production of batteries that are used in the next model generations of Volvo Cars.
The new research and development center, which should create hundreds of new jobs, is only the beginning. In the next step, there is a new European production facility for the production of next-generation modern battery cells, as the automaker announces. They are specially developed for future electric cars of Volvo and Polestar. The exact location of the factory is expected to be announced in early 2022.
Synergy effects by partnership
The new research and development center is in close proximity to the existing Volvo research and development facilities and the innovation campus Northvolt Labs in Swedish Vasterås, which promotes synergies and efficiency in the development of battery techniques.
“Our partnership with Northvolt ensures the supply of high-quality, sustainably produced batteries for the next generation purely electrical Volvo models,” explains Håkan Samuelsson, President and CEO of Volvo Cars. “This will strengthen our core competencies and our position in the transformation to a pure e-automaker.”
The partnership will focus on the development of tailor-made batteries, which Volvo drivers should enable the desired reach and short loading times. Volvo Cars works with Northvolt to create a real end-to-end system for batteries, whereby the company develops and manufactures the batteries themselves. These deep vertical integration is important because batteries are the costly largest single item of electric cars – and also decisively influence the CO2 footprint.
“Volvo Cars is an excellent partner for building a production network for battery cells that are manufactured in Europe and have a small CO2 footprint. Through vehicle integration, we achieve the best possible performance for the next generation of electric cars, “adds Peter Carlsson, CEO of Northvolt.
Publisher for electrification
Also the search for a European site for the common battery work turns on the target straight line: The production facility planned by Volvo and Northvolt is intended to have an annual capacity of up to 50 gigawatt hours (GWH), which is the battery requirement of around half a million e-cars per year is equivalent to. The start of construction is provided for 2023, the mass production for 2026. The work is expected to make up to 3000 jobs.
The partnership with Northvolt secure the European demand for battery cells, which is part of the electrification plans of Volvo. The Swedish car manufacturer wants to take a leading role in the fully electric premium segment. By mid-this decade, every second vehicle sold is purely electricity, from 2030, the company wants to offer only electric cars.
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