Volvo Cars and Northvolt will build a brand new battery manufacturing plant in Gothenburg, Sweden. It is set to begin operations in 2025, making 3,000 jobs in the process. The Manufacturing and R&D centre is part of a SEK 30 billion investment.
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.
Building starts in 2023 to eventually make batteries for use in next generation pure electric Volvo and Polestar cars. Cell production capacity of up to 50 gigawatt hours (GWh) would equal around million cars per year.
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The new plant is located near 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.”
“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”, said Peter Carlsson, Co-Founder and CEO of Northvolt.
The sustainable production plant will be powered by fossil-free energy with focus on driving renewable energy capacity in the region.
Battery production for Volvo Cars’ and Polestar’s fully electric models represents a large part of each car’s total life cycle carbon emissions. Volvo claims that by working with Northvolt, can significantly reduce the environmental footprint attributable to battery sourcing and production for their future cars.
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Alan Zurvas is the founder and editor of Gay Car Boys, Australia's leading LGBTQI+ automotive publication. Before launching GCB in 2008, Alan's automotive writing was published in SameSame.com.au and the Star Observer. With over 16 years of hands-on car reviewing experience, Alan brings an honest, irreverent voice to every review — championing value and innovation over brand loyalty.
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