Volvo’s battery supplies are secured
Author: Mario Schmidtgen
Deliveries from China and South Korea
The Swedish carmaker Volvo does not want to worry about the supply of batteries for future electric cars. For this reason, agreements have been concluded with the battery manufacturers CATL from China and LG Chem from South Korea on the supply of lithium-ion batteries for the next ten years. The aim is to secure the supply of the next Volvo models and the subsidiary Polestar.
According to the Swedish car manufacturer, the order volume amounts to several billion US dollars. Furthermore, Volvo’s “strict guidelines” regarding technology leadership, a responsible supply chain and competitive pricing models are also met by CATL and LG Chem. The batteries will be compatible with the existing CMA platform and the future SPA2 platform.
Volvo announced already in the summer of 2017 that it would gradually phase out vehicles with pure combustion engines over the next few years. Starting this year, every Volvo model will have a pure electric motor. The company has now revised this strategy and promised that by 2025 up to 50 percent of the cars sold will have an electric drive.
A plant is currently under construction in Ghent, where the all-electric Volvo will be built from the end of 2019. The so-called XC40 and Polestar 2 will also be built in Luqiao, China.