Multi-billion dollar battery supply deals
Posted on 10 Jun 2019 and read 1193 times
Volvo Car Group has signed long-term agreements with leading battery makers CATL and LG Chem to ensure the multi-billion-dollar supply of lithium ion batteries over the coming decade for next-generation Volvo and Polestar models. (www.group.volvocars.com
The agreements cover the global supply of battery modules for all models on the upcoming SPA2 and the existing CMA modular vehicle platforms; they represent a major step towards Volvo Cars achieving its electrification ambitions.
In 2017, Volvo Cars made the commitment 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% of its global sales volume by 2025.
Håkan Samuelsson, president and CEO of Volvo Cars, said: “The future of Volvo Cars is electric, and we are firmly committed to moving beyond the internal combustion engine.
“Today’s agreements with CATL and LG Chem demonstrate how we will reach our ambitious electrification targets.”
CATL (of China) and LG Chem (of South Korea) both have long and successful track records supplying lithium ion batteries to the global automotive industry.
Volvo Cars says the two companies meet its strict sourcing guidelines in terms of technology leadership, responsible supply chains and competitive cost models.
Volvo Cars’ first battery assembly line is currently under construction at its manufacturing plant in Ghent, Belgium; it will be completed by the end of this year.
The first fully electric Volvo to be built in Ghent will be the award-winning XC40 small SUV; plug-in hybrid variants of the XC40 are already manufactured there.
Earlier this year, Volvo Cars revealed a number of upgraded and newly developed electrified powertrain options; these will be made available across its entire model range in due course.
It has also upgraded its existing T8 Twin Engine plug-in hybrid powertrain, with plug-in options now available on every model it produces.