Volvo Car Group and Northvolt establish a battery JV According to its press release Volvo Car Group intends to establish a joint venture with leading Swedish battery company Northvolt. They […]
Volvo Car Group and Northvolt establish a battery JV
According to its press release Volvo Car Group intends to establish a joint venture with leading Swedish battery company Northvolt. They are planning to develop and produce more sustainable batteries, tailored to power the next generation of pure electric vehicles. At first, they aim to set up a research and development center in Sweden that will begin operations in 2022. The center will develop next-generation, state-of-the-art battery cells and vehicle integration technologies, specifically developed for use in Volvo Cars.
In addition, the planned joint venture will also establish a new gigafactory in Europe with a potential capacity of up to 50 gigawatt hours (GWh) per year. It will start its operation in 2026. Furthermore, as part of the plans, Volvo Car Group looks to source 15 GWh of battery cells per year. Its supply will come from the existing Northvolt Ett battery plant in Skellefteå, Sweden starting in 2024. This partnership will drive Volvo Cars’ ambitious electrification plans. More specifically, Volvo Cars aims to sell 50 per cent pure electric cars by the middle of this decade. In addition, by 2030 it aims to sell only fully electric cars.
Who is Volvo Car Group?
According to its homepage, Volvo Cars created world-changing innovations since the first Volvo rolled off the production line in 1927. For example, they produced the modern seatbelt, the side impact protection system and the pedestrian detection system. As a result, Volvo Cars is one of the most well-known and respected premium car brands today. In addition, the company prepares for a new future that will be all-electric, autonomous and connected.
Volvo Cars is a truly global organization. In fact, the company has its root on Scandinavian. However, it has manufacturing, research and design operations in Europe, Asia and the Americas. There are several incredible figures here
- 661K Cars sold in 2020
- 40K Average number of employees
- 8.5 2020 operating profit (bnSEK)
Who is Northvolt?
According to its homepage, founders established Northvolt in 2017. Their mission is to make the world’s greenest battery with a minimal carbon footprint. In addition the mission includes the highest ambitions for recycling to enable the European transition to renewable energy.
What’s more, their vision is to enable the future of energy. To accelerate the transition to a decarbonized future, Northvolt is supplying sustainable, high-quality battery cells. Also, the company creates systems by building Europe’s largest li-ion battery factory.
Battery is important
In the other article about Volkswagen’s power day, automotive manufacturers are seriously considering they will produce batteries for their EVs. There are several reasons why they do so.
First, batteries still account for the large part of EV’s costs. Therefore, if automotive makers can produce batteries by themselves, it can reduce the cost of EVs. As a result, they can offer electric vehicles for more affordable price so that the technology is more available for everyone in the world.
Second, to secure enough supply chain of batteries is getting more crucial. Batteries need some precious metal like cobalt and these metals are unevenly existing in the world. Therefore, if companies rely on imports for batteries, it can be risk. In this sense, more automotive manufacturers will produce batteries for their electric vehicles.
Finally, batteries need technological advancements to increase their capacity and to reduce costs. When manufacturing companies produce some products, there are always rooms for improvement. As a result, it gives more opportunities to realize innovation. Of course, it adds costs, but they can be paid off by potential innovation.