Volvo signs multi-billion-dollar battery supply deals with CATL and LG Chem

Chennai: Volvo Car Group has announced that it has signed long-term agreements with leading battery makers CATL and LG Chem for supply of lithium ion batteries over the coming decade for next generation Volvo and Polestar models.

The agreements cover the global supply of battery modules for all models on the upcoming SPA2 and the existing CMA modular vehicle platforms and represent a major step towards realising Volvo Cars’ ambitious electrification strategy, stated a release.

The move comes after the firm announced in 2017 that all new Volvo cars launched from 2019 would be electrified. The company has since reinforced this strategy, by stating that it aims for fully electric cars to make up 50 per cent of its global sales volume by 2025.

“The future of Volvo Cars is electric and we are firmly committed to moving beyond the internal combustion engine,” said president and CEO of Volvo Cars, Håkan Samuelsson. “Today’s agreements with CATL and LG Chem demonstrate how we will reach our ambitious electrification targets.”

Volvo Cars’ first battery assembly line is currently under construction at its manufacturing plant in Ghent, Belgium. It will be finalised by the end of this year and the first fully electric Volvo to be built in Ghent is the XC40 small SUV.

NT Bureau