Volvo Cars and Northvolt have announced they will establish a new electric vehicle (EV) battery manufacturing plant that will be located in Gothenburg, Sweden. Operations at the new plant, which create up to 3,000 jobs, are expected to commence in 2025
This will complement the planned R&D centre that both companies announced in December as part of an investment of approximately SEK 30 billion. The new plant and close ties with Northvolt will significantly strengthen Volvo Cars’ electrification strategy as the company aims to produce and sell only fully electric cars by 2030.
Construction of the plant will start in 2023 and it will produce state-of-the-art 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 50 gigawatt hours (GWh), 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 competencies, as well as its proximity to both Volvo Cars’ and Northvolt’s R&D units.
Håkan Samuelsson, Volvo Cars chief executive, said: “Our battery cell partnership with Northvolt is key to our strategic ambitions in electrification. We are committed to becoming a leader in the premium electric car segment and selling only pure electric vehicles by 2030.”
Peter Carlsson, Northvolt co-founder and CEO, said: “Establishing this gigafactory in Gothenburg is a decisive move, both to continue to transform one of the most dynamic automotive regions in the world, and to become the leading global supplier of sustainable batteries.”
As sustainable production is a central tenet of the partnership between Volvo Cars and Northvolt, the plant will be powered by fossil-free energy. Plus, there will be a focus on driving renewable energy capacity in the region and will integrate engineering solutions that prioritise 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, a leader in sustainable battery production, and producing batteries near its manufacturing facilities in Europe, Volvo Cars and Polestar can significantly reduce the environmental footprint attributable to battery sourcing and production for their future cars.
Javier Varela, Volvo Cars head of engineering and operations, said: “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.
“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.”
The battery cell production joint venture between Northvolt and Volvo Cars will be a significant player in European battery cell production and will represent one of the largest cell production units in Europe. Volvo Cars and Northvolt have appointed former Tesla executive Adrian Clarke to lead the production company.
