Construction of the new battery plant will start in 2023 and it is scheduled to begin operations in 2025.
The new plant will produce battery cells specifically developed for use in next-generation pure electric Volvo and Polestar cars. It is set to create up to 3,000 jobs and will complement a planned R&D centre that that the Volvo and Northvolt announced in December as part of an investment of approximately SEK30bn.
Volvo Cars said that the new plant and close ties with Northvolt will significantly strengthen its electrification strategy as it aims to produce and sell only fully electric cars by 2030.
The 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.
Volvo Cars said that the location of the plant in Torslanda, Gothenburg, offers benefits such as a direct route into its largest car plant, access to infrastructure and a strong pipeline of renewable energy supply and relevant job skills. It is also close to both Volvo Cars’ and Northvolt’s R&D units.
“Our battery cell partnership with Northvolt is key to our strategic ambitions in electrification,” said Håkan Samuelsson, Volvo Cars chief executive. “We are committed to becoming a leader in the premium electric car segment and selling only pure electric vehicles by 2030.”
“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”, said Peter Carlsson, co-founder and CEO of Northvolt.
The plant will be powered by fossil-free energy with focus on driving renewable energy capacity in the region, and will integrate engineering solutions that prioritise resource efficiency.
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