Volvo has signed a multi-billion deal with CATL and LG Chem to sort supply of batteries for all new electric Volvos.
Making sure you have enough batteries to actually complete electric cars and get them in to showrooms has become a fraught subject for legacy car makers as they transition to mainstream electric models. But Volvo hope they’re sorted that.
We’ve already seen the first battery electric Volvo, even if it is badged Polestar 2, but later this year the first Volvo-badged electric car should finally arrive in the shape of an electric XC40, with more fully electric Volvo models models planned.
Volvo has now signed a deal with CATL and LG Chem to ensure a global supply of batteries for the next decade, both for cars made on the CMA Platform (like the XC40) and those to come on the new SPA 2 Platform (an updated version of the platform currently underpinning Volvo’s bigger vehicles, like the XC90).
Volvo is currently busy building its first battery assembly line in Ghent, Belgium, which will be ready by the end of the year so the fully electric XC40 can be produced along with the plug-in versions.
Håkan Samuelsson, Volvo’s CEO, 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.
The Volvo battery deal with CATL and LG Chem also ensures supply for Polestar and Lynk & Co and, it seems likely, Lotus too in time.