Volvo Northvolt Battery
9:30 PM | January 24 2022

Volvo Cars and Northvolt to open Gothenburg R&D centre

Partnership will secure the supply of high-quality, sustainably produced batteries for the next generation of pure electric Volvos.
Volvo Cars and Northvolt will open a joint research and development (R&D) centre in Gothenburg as part of a SEK 30 billion (A$4.6b) investment in battery development and manufacturing.
 
The R&D centre, which will become operational this year, will create a few hundred jobs in Gothenburg and positions Volvo Cars as one of the few automotive brands to make battery-cell development and production part of its end-to-end engineering capabilities.
 
Following the partnership announced by both companies earlier this year, Volvo Cars and Northvolt have 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 new R&D centre in Gothenburg will be followed by the construction of a new manufacturing plant in Europe.
 
It will produce next-generation, state-of-the-art battery cells, developed specifically for use in next-generation pure electric Volvo cars.
 
The R&D centre will be near both Volvo Cars’ own R&D operations and Northvolt’s existing innovation campus Northvolt Labs in Västerås, Sweden, ensuring synergies and efficiencies as it develops battery technologies.

Volvo and Northvolt
Above: Håkan Samuelsson, chief executive for Volvo Cars, and Peter Carlsson, chief executive for Northvolt.
 
 
“Our partnership with Northvolt secures the supply of high-quality, sustainably produced batteries for the next generation of pure electric Volvos,” said Håkan Samuelsson, chief executive for Volvo Cars. “It will strengthen our core competencies and our position in the transformation to a fully electric car company.”
 
The partnership will focus on developing tailor-made batteries that give Volvo drivers what they want, such as range and quick charging times.
 
Volvo Cars is working with Northvolt to create a true end-to-end system for batteries, whereby it develops and builds the batteries itself. This deep vertical integration is important since the battery represents the largest individual cost component in an electric car, as well as a major part of the carbon footprint.
 
“Volvo Cars is an excellent partner on the road towards building up a supply of battery cells that are made in Europe with a very low carbon footprint, and that are optimised through vehicle integration to get the best performance out of the next-generation EVs,” said Peter Carlsson, chief executive for Northvolt.
 
Volvo Cars and Northvolt are in the final phase of a selection process to find a suitable location in Europe for their joint battery plant. The plant will have a potential annual capacity of up to 50 gigawatt hours (GWh), which would supply batteries for approximately half a million cars per year. It will start construction in 2023, with large-scale production in 2026, and is expected to employ up to 3,000 people.
 
Alongside battery supply agreements, the partnership with Northvolt secures the European battery cell needs that are part of Volvo Cars’ ambitious electrification plans. It aims to sell 50 per cent pure electric cars by the middle of this decade, and by 2030 it aims to sell only fully electric cars.