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Volvo Cars and Northvolt accelerate shift to electrification with new 3,000-job battery factory in Gothenburg, Sweden

Volvo Cars and Northvolt have chosen Gothenburg, Sweden, to establish a new battery manufacturing facility that will begin operations in 2025, create up to 3,000 jobs and complement the planned R&D center the two companies announced in December in as part of an investment of approximately SEK 30 billion. .
The new plant and close ties with Northvolt will significantly boost Volvo Cars’ electrification strategy, as the company aims to produce and sell only fully electric cars by 2030.
Construction of the plant will begin in 2023 and will produce state-of-the-art battery cells specially developed for use in next-generation Volvo and Polestar electric cars.
The plant will have a potential annual cell production capacity of up to 50 gigawatt hours (GWh), which would provide batteries for around half a million cars per year.
The plant’s Swedish site, which will be built in Torslanda, Gothenburg, offers advantages in terms of direct access to Volvo Cars’ largest automotive plant, access to infrastructure, a strong supply network in renewable energy and relevant professional skills, as well as its proximity to the R&D units of Volvo Cars and Northvolt.
“Our battery cell partnership with Northvolt is key to our strategic electrification ambitions,” said Håkan Samuelsson, Managing Director of Volvo Cars. “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 game-changing move, both to continue to transform one of the most dynamic automotive regions in the world and to become the world’s leading supplier of sustainable batteries,” said Peter Carlsson, co -founder and CEO of Northvolt. .
With sustainable production being a central tenet of the partnership between Volvo Cars and Northvolt, the plant will be powered by non-fossil energy with a focus on renewable energy capacity in the region and will incorporate engineering solutions that prioritize circularity and resource efficiency.
Battery production for Volvo Cars’ and Polestar’s all-electric models accounts for a large portion of each car’s total lifecycle carbon emissions. By working with Northvolt, a leader in the production of sustainable batteries, and producing batteries close to its manufacturing facilities in Europe, Volvo Cars and Polestar can significantly reduce the environmental footprint attributable to the sourcing and production of batteries for their future cars.
“Our new battery factory will support our ambition to have a fully climate-neutral manufacturing network and ensure 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 greatly benefit from an end-to-end battery value chain, from raw material to complete car, ensuring optimal integration into our cars.”
The battery cell production joint venture between Northvolt and Volvo Cars will be an important player in European battery cell production and represent one of the largest cell production units in Europe. Volvo Cars and Northvolt have named former Tesla executive Adrian Clarke as head of the production company.
The R&D center, which will become operational in 2022, will create a few hundred jobs in Gothenburg and position Volvo Cars as one of the few automotive brands to integrate battery cell development and production into its end-to-end engineering capabilities. at the end.
The partnership between Volvo Cars and Northvolt will focus on developing bespoke battery and vehicle integration concepts that give Volvo and Polestar drivers what they want, such as long range and fast charging times. Establishing deep vertical integration of battery development and production is important for Volvo Cars and Polestar, as the battery represents the largest individual cost element of an electric car, as well as a significant part of the ‘carbon footprint.
Together, the new battery factory and R&D center will require a range of skills and the joint venture is therefore actively recruiting highly qualified engineers and team leaders to drive the project forward. Full-scale recruitment of operators and technicians will begin in late 2023.