Northvolt, Volvo Cars Choose Gothenburg For New Battery Plant – By ASC

Volvo Cars and Northvolt will form a joint venture to develop the battery, including setting up a giga plant for production and a research and development center.

Carmaker Volvo Cars and battery maker Northvolt will build a battery plant with them in Gothenburg, western Sweden, the two companies said on Friday. The new 50GWh plant will create up to 3,000 jobs and make battery cells developed specifically for use in pure electric Volvo and Polestar cars, the Sweden -based company said. Operations will begin in 2025. The two companies said last year they would form a joint venture to develop batteries, including setting up a giga plant for production and a research and development center, with a total investment of about $ 3.3 billion.

Northvolt and Volvo said former Tesla executive Adrian Clarke has been appointed to lead the production company.

“He came with a long experience from Tesla as well as how to build this type of plant,” Northvolt CEO Peter Carlsson, who also once worked for Tesla, told Reuters.

Volvo Cars ’head of engineering and operations, Javier Varela, said access to fossil -free energy, skills and infrastructure was a factor in choosing Gothenburg, Volvo’s hometown.

The competition for talent is fierce, with most battery engineers based in Asia. Tesla and Asian companies such as LG and Samsung SDI are also setting up factories in Europe.

Northvolt’s giga plant in the Swedish town of Skelleftea installed its first battery cell in late December, making it the first European company to design and manufacture batteries in Europe.

Carlsson said it went as planned, though he said global supply chain problems, semiconductor shortages, and COVID-19 have made it even more challenging. “It’s not the easiest time,” he said.

Volvo Cars, majority owned by Geely Holding China, aims to sell 50 percent pure electric cars by the middle of this decade and fully electric cars only by 2030.

Northvolt, whose largest shareholder is Volkswagen, has so far received more than $ 30 billion in contracts from customers such as BMW, Fluence, Scania, Volkswagen, Volvo Cars and Polestar.

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