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The plant will create up to 3,000 jobs in an investment of up to SEK 30 billion. The new plant and close ties with Northvolt will significantly strengthen Volvo Cars' electrification strategy, as the company aims to manufacture and market only pure electric cars by 2030.
Construction of the plant will begin in 2023. Its purpose will be to produce advanced batteries, specially developed for use in the next-generation all-electric Volvo and Polestar cars. The plant will have an annual capacity of up to 50 gigawatt hours (GWh), supplying batteries to around half a million cars per year.
As sustainable production is a fundamental principle in Volvo Cars' partnership with Northvolt, the plant will be powered by fossil fuel-free energy, with a focus on promoting renewable energy capacity in the region, and will incorporate engineering solutions that prioritise cyclicality and resource adequacy.
Battery production for Volvo Cars' and Polestar's all-electric models accounts for a large proportion of the total carbon emissions in each car's life cycle. Working with Northvolt, a leader in sustainable battery production, and producing batteries close to Volvo's factories in Europe, allows Volvo Cars and Polestar to significantly reduce the environmental footprint associated with resource extraction and battery production for their future cars.
The R&D centre that will open this year, creating several hundred jobs in Gothenburg, makes Volvo Cars one of the few manufacturers that make the entire battery development and production process (end-to-end) part of their production capacity.
Volvo Cars' collaboration with Northvolt will focus on developing batteries with the cars they are integrated into in mind, to give Volvo and Polestar drivers the features they want, such as autonomy and short charging times. The vertical integration of battery development and production is important to Volvo Cars and Polestar, as the battery is the highest cost component in an electric car and accounts for a large part of the carbon footprint.
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