Volvo Car Group Signs Multi-Billion Dollar Battery Supply Deals with CATL & LG C

Volvo Car Group Signs Multi-Billion Dollar Battery Supply Deals with CATL & LG Chem
Volvo Car Group Signs Multi-Billion Dollar Battery Supply Deals with CATL & LG C

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.

The company said 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.

It may be noted that Volvo Cars had made a commitment in 2017 that all new cars launched from 2019 onwards would be electrified. The company aims for fully electric cars to make up 50 per cent of its global sales volume by 2025.

Volvo Cars’ first battery assembly line is currently under construction at its manufacturing plant in Ghent, Belgium and will be finalised by 2019-end and the first fully electric Volvo to be built in Ghent is XC40 small SUV. Plug-in hybrid variants of the XC40 are manufactured there.

Hakan Samuelsson, President & CEO, Volvo Cars, said the future of Volvo Cars is electric and the company is firmly committed to moving beyond the internal combustion engine. Today’s agreements with CATL and LG Chem demonstrate how it will reach its ambitious electrification targets, he added.