Volvo Cars is building a new battery plant together with Northvolt in Gothenburg, Sweden. The plant should be operational in 2025 and will focus on the production of batteries for electric vehicles (EVs) specifically Volvo and Polestar, Volvo Car Corporation's performance brand.
Electrification is a key focus for Volvo; the company has set itself the goal of exclusively producing and selling fully EVs by 2030. The partnership the company is now entering into with Northvolt is helping to achieve this goal. Volvo Cars points out that battery production is a significant part of the total emissions over the life cycle of an EV.
Production capacity of 50 GWh
Construction of the new plant in Torslanda, Gothenburg will start in 2023. The plant will focus entirely on battery cell production. On an annual basis, the site should produce up to 50 gigawatt hours of battery cells. This is enough for an estimated half a million EVs a year, according to Volvo Cars.
Torslanda, Gothenburg has been chosen as the location for the new plant because of its location. For instance, the location is located near R&D centres of both Volvo Cars and Northvolt. In addition, sufficient talent is available in the region and an ample amount of renewable energy is available to power systems at the plant. Because the battery plant is relatively close to European production sites of Volvo Cars and Polestar, this reduces the environmental impact of battery production and thus the brands' EV production. Volvo Cars also points to the cost of a battery, which is the most expensive component of an EV.
'Key to strategic ambitions'
"Our battery cell partnership with Northvolt is key in our strategic ambitions in electrification," said Håkan Samuelsson, top executive at Volvo Cars. "We are committed to gaining a leading position in the premium EV segment and selling exclusively electric vehicles by 2030."
"Setting up this gigafactory in Gothenburg is a decision choice, both for continuing the transformation of one of the most dynamic automotive regions worldwide and becoming a global leader in sustainable batteries," adds Peter Carlsson, co-founder and CEO of Northvolt.
'Completely climate-neutral manufacturing network'
"Our new battery plant supports our ambition to have a completely climate-neutral production network. And secure a safe supply of high quality batteries for years to come," explains Javier Varela, head of engineering & operations at Volvo Cars. "Through our partnership with Northvolt, we benefit significantly from an end-to-end value chain in the field of batteries. From raw materials to a complete car. This secures optimal integration in our vehicles."
Adrian Clarke, a former top executive of electric vehicle manufacturer Tesla, has been appointed top executive of the new manufacturing company. A new R&D centre will also be opened in Gothenburg. Within the collaboration, the focus is on developing customised batteries. And concepts for vehicle integration that enable, among other things, long range and short charging times.
Joint venture with Galp
Northvolt has been making significant inroads recently. The company established a joint venture with Portuguese energy company Galp in late 2021. Together, the parties aim to build Portugal's most sustainable lithium plant. And strengthen Europe's position in the value chain around batteries.
In January, Northvolt announced that it had produced the first lithium-ion battery manufactured entirely in Europe. This is the first lithium-ion battery to have been designed, developed and assembled by a European company in a gigafactory. To finance its mega-factory, Northvolt Ett – shown in the photo – the company had previously raised 900 million euros from investors. It also secured a loan of 350 million euros from the European Investment Bank (EIB).
Author: Wouter Hoeffnagel
