Volvo teams Northvolt to set a battery gigafactoryEuropost
The Swedish carmaker Volvo announced plans to join Northvolt in the development of car batteries as demand for electric vehicles is surging, Reuters reported. Under the new tie-up, the to companies will set a research and development centre in Sweden with the ambition to establish a battery gigafactory The project should become operational by 2022 and should produce a potential capacity to up to 50 gigawatt hours (GWh) per year in 2026.
"Working closely with Northvolt will also allow us to strengthen our in-house development capabilities," said Hakan Samuelsson, chief executive at Volvo Car Group. Northvolt will become Volvo Cars' exclusive battery cell production partner in Europe. The gigafactory will be powered by clean energy and is expected to employ around 3,000 people. The location of the plant has yet to be decided.
Northvolt raised $2.75 billion in equity this month to expand capacity at the factory it is building in northern Sweden, and Volvo plans to source battery cells from that battery plant starting in 2024. German carmaker Volkswagen is Northvolt's biggest shareholder and the battery maker has also got contracts worth billions from the likes of BMW and Scania. Battery makers are scrambling to keep up with demand as carmakers switch to electric in order to reduce planet-warming carbon emissions.