Volvo to build own gigafactory by 2026
Swedish car-maker says it needs own battery plant to supply cells for pure-electric futureVolvo has announced it will form a joint venture with Northvolt to build a giant gigafactory in Europe to ensure it has enough capacity to supply batteries for all its future models.
The Swedish car brand has not revealed where in Europe its new gigafactory will assemble batteries, but says the new plant will begin supplying power packs for Volvo and Polestar models from 2026.
Until then, as part of the new joint venture, Volvo will source 15GWh of batteries from Northvolt's Skelleftea plant in northern Sweden from 2024 that is likely to power the new pure-electric Volvo XC60 SUV.
The move to open its own battery plant makes sense for Volvo as it has already committed to having 50 per cent of its global sales made up of EVs by 2025. And by 2030 it will ditch combustion power altogether.
In line with Volvo's sustainable targets, Northvolt's production methods are claimed to reduce the environmental impact of battery-making, with the new factory claimed to be entirely powered by renewable energy when it becomes operational in 2026.
Volvo is the third car-maker to strike a deal with Northvolt. Volkswagen will open its own joint-venture gigafactory with the Swedish firm in Germany in 2024, while BMW has already agreed a billion-dollar battery supply deal with the Stockholm-based company.
Volvo says it will release more details of its new EV strategy and battery production plans on June 30.
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