Volvo is going EV-only and that means the automaker is going to need a lot of batteries.
With that in mind, the company is joining forces with Northvolt to establish a 50/50 joint venture. As part of the tie-up, the companies are planning to create a new research and development center in Sweden next year.
The R&D center is designed to build battery expertise within both companies, and will be tasked with developing next-generation battery cells and vehicle integration technologies for future Volvo and Polestar vehicles.
Also Read: Volvo To Kill Their ICE Offerings By 2030
More importantly, the joint venture will lead to a new gigafactory in Europe that has the potential to produce up to 50 gigawatt hours (GWh) of batteries annually. Production is slated to begin in 2026 and the factory will be powered exclusively by green energy. A location has yet to be determined, but the facility is expected to employ around 3,000 people.
That brings us to the biggest bit of news, which is an “electric successor to Volvo Cars’ best-selling XC60 model.” Little is known about the crossover at this point but, considering battery production is slated to begin in 2026, the XC60 EV should arrive around the same time.
Volvo is set to reveal more details during a “Tech Moment” on June 30th, but the company also revealed they are seeking to source 15 GWh of battery cells annually from Northvolt’s Skellefteå plant starting in 2024.
Volvo expects 50% of sales to come from electric vehicles by 2025 and aims to only sell electric vehicles by 2030. Volvo CEO Håkan Samuelsson noted the joint venture will help them accomplish this as “By working with Northvolt we will secure a supply of high-quality, more sustainable battery cells for our pure electric cars.” He added the partnership will also allow the company to “strengthen our in-house development capabilities.”
