Volvo, Northvolt to build new EV battery plant in Sweden

The new 50-gigawatt-hour factory will create battery cells specifically developed for use in pure electric Volvo and Polestar cars.The operation will begin in 2025.
By : Reuters
| Updated on: 05 Feb 2022, 05:56 PM
File photo used for representational purpose only.
File photo used for representational purpose only.
File photo used for representational purpose only.
File photo used for representational purpose only.

Automaker Volvo Cars and battery manufacturer Northvolt will build their joint battery plant in Gothenburg, western Sweden, the two companies said on Friday.

The new 50-gigawatt-hour (GWh) plant will create up to 3,000 jobs and make battery cells specifically developed for use in pure electric Volvo and Polestar cars, the Sweden-based companies said. Operations will begin in 2025.

The two companies said last year they would form a joint venture to develop batteries, including setting up a gigafactory for production and a research and development centre, a total investment of about 30 billion crowns ($3.3 billion). Northvolt and Volvo said former Tesla executive Adrian Clarke had been appointed to lead the production company.

Similar Cars

Find More Cars
Volvo Xc40 (HT Auto photo)
Volvo Xc40
1969 cc | Petrol | Automatic (Torque Converter) | 14.49 kmpl
₹41.25 Lakhs**Ex-showroom price
Bmw 3 Series Gran Limousine (HT Auto photo)
Bmw 3 Series Gran Limousine
1998 cc | Petrol | Automatic (Torque Converter) | 15.3 kmpl
₹51.5 - 54.9 Lakhs**Ex-showroom price
Tata Tigor Ev (HT Auto photo)
Tata Tigor Ev
Electric | Automatic
₹11.99 - 13.14 Lakhs**Ex-showroom price
Tata Altroz Ev (HT Auto photo)
UPCOMING
Tata Altroz Ev
 
₹12 - 15 Lakhs* *Expected Price
Tata Nexon Ev (HT Auto photo)
Tata Nexon Ev
Electric | Automatic
₹13.99 - 16.85 Lakhs**Ex-showroom price
Tata Nexon Ev Max (HT Auto photo)
Tata Nexon Ev Max
Electric | Automatic
₹17.74 - 19.24 Lakhs**Ex-showroom price

"He comes with a long experience from Tesla as well as around how to build these type of factories," Northvolt CEO Peter Carlsson, who also previously worked for Tesla, told Reuters.

(Also read | Volvo Group India seeks moderate taxation regime for auto sector)

Volvo Cars head of engineering and operations, Javier Varela, said access to fossil-free energy, skills and infrastructure had been factors for choosing Gothenburg, Volvo's hometown.

Competition for talent is fierce, with most battery engineers based in Asia. Tesla and Asian companies such as LG and Samsung SDI are also setting up factories in Europe.

Northvolt's gigafactory in the Swedish town of Skelleftea assembled its first battery cell at the end of December, making it the first European company to design and manufacture a battery in Europe.

Carlsson said it was running as planned, although he said global supply-chain problems, semiconductor shortages and the COVID-19 had made it more of a challenge. "It has not been the easiest of times," he said.

(Also read | New Volvo electric SUV to drive autonomously on the highways: Details here)

Volvo Cars, majority-owned by China's Geely Holding, aims to sell 50% pure electric cars by the middle of this decade and fully electric cars only by 2030.

Northvolt, whose biggest shareholder is Volkswagen, has so far received more than $30 billion worth of contracts from customers such as BMW, Fluence, Scania, Volkswagen, Volvo Cars and Polestar.

 

First Published Date: 05 Feb 2022, 05:56 PM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city