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Volvo Car Group, Northvolt To Form JV For Battery Development And Production

Swedish luxury automaker Volvo Car Group, owned by China's Zhejiang Geely Holding, Monday said it intends to establish a joint venture with Swedish battery company Northvolt.

The 50/50 joint venture will develop and produce more sustainable batteries, tailored to power the next generation of pure electric Volvo and Polestar cars.

The partnership and joint venture are subject to final negotiation and agreements between the parties, including board approval.

As a first step, Volvo Car Group and Northvolt aim to set up a research and development centre in Sweden that will begin operations in 2022. The centre would develop next-generation, state-of-the-art battery cells and vehicle integration technologies, specifically developed for use in Volvo and Polestar cars.

The planned joint venture will also establish a new gigafactory in Europe with a potential capacity of up to 50 gigawatt hours or GWh per year. Production is scheduled to start in 2026.

As part of the plans, Volvo Car Group plans to source 15 GWh of battery cells per year from the existing Northvolt Ett battery plant in Skellefteå, Sweden starting in 2024.

Volvo Cars expects the partnership with Northvolt will secure its European battery cell needs for its ambitious electrification plans.

Volvo Cars aims to sell 50 percent pure electric cars by the middle of this decade, and by 2030 it aims to sell only fully electric cars.

The new gigafactory, planned to be powered by 100 percent clean energy, is expected to employ around 3,000 people. The location of the new plant is yet to be decided.

The first car to feature battery cells developed through the joint venture will be the electric successor to Volvo Cars' best-selling XC60 model.

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