Volvo plans to build a gigantic battery factory in Europe together with the Swedish battery manufacturer Northvolt. The announced battery factory should open its gates in 2026.
Volvo says it wants to set up a joint venture with the Swedish battery manufacturer Northvolt. That joint venture, in which both companies will own 50 percent of the shares and thus the reins, wants to open a research and development center for battery technology in Sweden next year. In 2026, the partnership is to put into operation a large factory in Europe that will build batteries. The intended annual production capacity of that factory must be about 50 gigawatt hours (GWh). It will be a while before that factory is there. Volvo has already announced that from 2024 it will purchase 15 GWh of battery cells from Northvolt every year.
According to Volvo, the joint venture aims to secure the supply of batteries for Volvo’s electrified cars destined for the European market. By 2025, half of all Volvos sold in Europe must be fully electric. The remaining 50 percent should at least be electrified. From 2030, Volvo only wants to sell electric cars. The factory, to be opened in 2026, will eventually employ about 3,000 people. It is not yet known where the factory will be located. Volvo does say that the successor to the current XC60, which only gets an electric powertrain, is the first Volvo in which the new battery cells get a place.