Volvo and Northvolt announced today that they will build a new battery plant in Gothenburg, Sweden, to complement an R&D center that was announced in December. The plant will open in 2025 and will require an investment of SEK 30 Billion ($3.2 billion at current exchange rates).
“Our battery cell partnership with Northvolt is key to our strategic ambitions in electrification,” said Volvo Cars chief executive Håkan Samuelsson. “We are committed to becoming a leader in the premium electric car segment and selling only pure electric vehicles by 2030.”
Sustainable production will be a central tenet of the plant, Volvo says, and as such it will be powered by fossil-free energy with a focus on driving the renewable energy capacity of the region. Since batteries make up a large part of EV manufacturing’s environmental impact, by minimizing the footprint of the plant Volvo hopes to make its vehicles greener.
“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,” said Javier Varela, head of engineering and operations at Volvo Cars. “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 facility will have a potential annual cell production capacity of up to 50gWh, which would supply the battery needs of around 500,000 vehicles per year and they will go into both Volvo and Polestar vehicles.
The plant will work alongside a new R&D center that will become operational this year and is also being run by Volvo and Northvolt. Together, they will work to create batteries that give EVs long ranges and fast charging times.
The upcoming battery plant will require up to 3,000 workers to operate and will be one of Europe’s largest cell manufacturing locations.