The SEK 30 billion (£2.4billion) new battery manufacturing plant will open in 2025 and create up to 3,000 jobs producing battery cells specifically for use in next-generation pure electric Volvo and Polestar cars. The plant – along with its ties with Northvolt – strengthens Volvo Cars’ electrification strategy as the company aims to produce only fully electric cars by 2030.
“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.
Battery production for Volvo Cars’ and Polestar’s electric models represents a large part of each car’s total lifecycle carbon emissions. By working with Northvolt and producing batteries close to its manufacturing facilities in Europe, Volvo Cars and Polestar can significantly reduce the environmental footprint attributable to battery sourcing and production for their future cars.
“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.”