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Volvo and Northvolt announced last week, that they will build a new battery plant in Gothenburg, Sweden, to complement an R&D center that was announced last December. The plant is expected to open in 2025 and will require an investment of $3.2 billion which is equal to 12 billion Riyal Saudi.
“Our battery cell partnership with Northvolt is key to our strategic ambitions in electrification,” said Volvo Cars chief executive Håkan Samuelsson. “We are committed to becoming a leader in the premium electric car segment and selling only pure electric vehicles by 2030,” He added.
According to Volvo, the factory will be fueled by fossil-free energy with an emphasis on increasing the region's renewable energy capability. Volvo intends to make its vehicles greener by reducing the plant's footprint, as batteries account for a substantial portion of EV manufacturing's environmental impact.
“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,” said Javier Varela, head of engineering and operations at Volvo Cars. “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.”
The plant will have a potential annual cell production capacity of up to 50gWh, enough to fulfill the battery demands of about 500,000 vehicles annually, and the cells will be used in both Volvo and Polestar vehicles.
The plant will work alongside a new R&D center, also run by Volvo and Northvolt, that will open this year. They'll collaborate to develop batteries with high range and quick recharge periods for electric vehicles.
The upcoming battery plant, which will employ up to 3,000 people, will be one of Europe's largest cell manufacturing facilities.
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