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Volvo inks major battery deal with Asian suppliers
Volvo signs deals with CATL and LG Chem for lithium-ion batteries
Looking to secure a long-term supply of batteries, the Volvo Car Group has signed long-term, “multi-billion dollar” deals with two of the biggest battery producers in Asia-Pacific.
CATL is a Chinese manufacturer and is currently the world’s largest producer of batteries for vehicles and recently announced plans to produce 60 gigawatt hours at a new German plant from the mid-2020s onwards.
LG is a South Korean firm but also has large interests in China, announcing a recent tie up with Chinese car manufacturer Geely Automobile to produce 10 gigawatt hours in the country by 2021. Volvo Cars was bought by China’s Zhejiang Geely Holding in 2010.
Volvo is teaming up with the companies to supply of lithium ion batteries for its next generation models, including independent brand Polestar.
The drive is critical and needs to come quickly for Volvo as it has committed to all new models it launches from this year onwards to be electrified and for half of all sales to be have completely electrified drivetrains by 2025.
The deals will “Decide the pace we have in the transition,” said, Volvo CEO Hakan Samuelsson, and the “supply of batteries will be crucial.”