Volvo teams up with Northvolt for new European gigafactory

The new factory will produce the batteries to power the next-generation pure-electric Volvo XC60, which is due to be unveiled in 2024

Northvolt

Volvo has partnered with Swedish battery manufacturer Northvolt to launch a new gigafactory for Europe. The plant will begin producing batteries in 2026, which will be used to power Volvo and Polestar’s next-generation electric vehicles.

The first vehicle to use a battery pack from the new gigafactory will be the next-generation Volvo XC60. The brand’s best-selling SUV is due to be replaced in 2024 and, like the XC40 P8 Recharge, will use pure-electric power.

Volvo and Northvolt will break ground on their new facility next year and, once the plant is running at its full potential, the pair expect a production capacity of up to 50 gigawatt hours (GWh) per year. In theory, that’s enough for around 600,000 vehicles.

The pair have entered the agreement on equal financial footing, holding a 50 per cent stake in the business each. It’s the latest move in Volvo’s eco-drive, as the brand pushes on towards its goal of becoming a pure-electric vehicle manufacturer by 2030

In the meantime, Volvo aims for 50 per cent of its sales to come from EVs by 2025, which will help the company achieve its other main goal of slashing carbon emissions across its fleet. The brand is also investigating means of cutting CO2 from its manufacturing processes, such as developing carbon-free steel for its vehicle bodies.

Volvo and Northvolt haven’t decided on a location for their new gigafactory yet, but to cut back on transport-related CO2 emissions, the pair says it will be near Volvo’s vehicle production lines. The battery plant will also create 3,000 jobs and will be powered by 100 per cent clean energy.

The battery plant will help Volvo’s sister brand Polestar realise its ambition to launch the first truly carbon-neutral car by 2030, too. Polestar says it will reach its goal by radically rethinking the way it builds cars, rather than simply offsetting carbon emissions by planting trees.

Now read more about Polestar’s planned climate-neutral car by clicking here

Recommended

Baby electric Volvo SUV likely to be built in China
Volvo XC20 - front (watermarked)
Volvo

Baby electric Volvo SUV likely to be built in China

Volvo's upcoming compact electric SUV edges closer, but is unlikely to be named 'XC20'
23 Jul 2021
New Volvo Concept Recharge previews firm’s all-electric future
Volvo Concept Recharge - front
Volvo

New Volvo Concept Recharge previews firm’s all-electric future

The new Volvo Concept Recharge gives a glimpse at the Swedish brand's design language inside and out
30 Jun 2021
Volvo announces new infotainment and safety plans
Volvo future infotainment 2
Volvo

Volvo announces new infotainment and safety plans

Volvo will adopt a new infotainment system and store data from drivers to promote safety
30 Jun 2021
Volvo targets range of 621 miles for EVs by 2030
Volvo battery tech
Volvo

Volvo targets range of 621 miles for EVs by 2030

Rapid-charging tech in Volvo models will be twice as fast by the middle of the decade, brand claims
30 Jun 2021

Most Popular

New 2021 Volkswagen Taigo coupe-SUV breaks cover
Volkswagen Taigo R-Line - front
Volkswagen Taigo

New 2021 Volkswagen Taigo coupe-SUV breaks cover

The new VW Taigo is a sportier, more aggressive looking version of the brand’s T-Cross and is aimed at lifestyle buyers
29 Jul 2021
Land Rover unveils limited-run Defender Trophy Edition
Land Rover unveils limited-run Defender Trophy Edition - front
Land Rover Defender

Land Rover unveils limited-run Defender Trophy Edition

Just 220 examples will be built to honour past Camel Trophy Land Rovers, all of which have been reserved for the North American market
30 Jul 2021
New 2021 Kia EV6 boasts up to 328 miles of range
Kia EV6 - front
Kia EV6

New 2021 Kia EV6 boasts up to 328 miles of range

Kia reveals more specs for its bespoke electric car, with the EV6 offering long range and an 18-minute 80 per cent rapid recharge time
21 Jul 2021