Volvo has announced that it is partnering with Northvolt, a supplier of sustainable battery cells, to open a new joint manufacturing plant in Sweden. The plant will be in Torslanda, Gothenburg and it will create up to 3,000 jobs.
Construction of the new battery plant will start in 2023 and it will be fully operational for 2025. The plant will build batteries for both Volvo and Polestar cars and has a potential annual cell production capacity of up to 50 gigawatt hours. That means that the plant can supply batteries for up to half a million cars a year.
“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.”
Since sustainability is a big focus for Volvo, the plant will be powered by fossil-free energy with a focus on driving renewable energy capacity and integrating engineering solutions that prioritize circularity and resource efficiency.