Volvo Cars, Northvolt to establish new battery plant in Sweden

Volvo Cars and Northvolt, a Swedish battery developer and manufacturer, announced that they will build a battery manufacturing plant in Gothenburg, Sweden. 

“Our battery cell partnership with Northvolt is key to our strategic ambitions in electrification. We are committed to becoming a leader in the premium electric car segment and selling only pure electric vehicles by 2030,” said Volvo Cars Chief Executive Håkan Samuelsson.

According to Volvo Cars, the new battery factory will begin construction next year and is scheduled to commence operations in 2025. It is strategically located in Torslanda, placing it in close proximity to Volvo Cars’ and Northvolt’s R&D units.

“Establishing this gigafactory in Gothenburg is a decisive move, both to continue to transform one of the most dynamic automotive regions in the world, and to become the leading global supplier of sustainable batteries,” says Northvolt Co-Founder and CEO Peter Carlsson.

The plant looks to produce state-of-the-art power cells which will be used in next-generation pure electric Volvo and Polestar cars.

In addition, Volvo Cars said that the Gothenburg battery plant will have a potential annual cell production capacity of up to 50-gigawatt hours (GWh), which would supply batteries for approximately half a million cars per year.

The plant will use fossil-fuel-free energy as both Volvo Cars and Northvolt are united by the goal of achieving sustainable production. That said, the Gothenburg factory will focus on driving renewable energy capacity in the region and will integrate engineering solutions that prioritize circularity and resource efficiency.

Battery production for Volvo Cars’ and Polestar’s fully electric models represents a large part of each car’s total lifecycle carbon emissions. A partnership with Northvolt puts Volvo and Polestar EVs in a position where they can achieve a significant reduction in their environmental footprint in terms of battery sourcing and production.

“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. 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,” commented Volvo Cars Head of Engineering and Operations Javier Varela.

Former Tesla executive Adrian Clarke has been chosen by both Volvo Cars and Northvolt to lead the production company. The new battery plant will see Volvo and Northvolt become one of the largest cell production units in Europe, together with Clarke and other highly skilled engineers and team leaders. Volvo Cars and Northvolt also announced their plans for large-scale recruitment of operators and technicians which will begin in late 2023.

Overall, Volvo said that the factory in Gothenburg will create some 3,000 jobs.

Photos from Volvo Cars

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