Volvo signs EV battery agreement
Volvo has signed long-term agreements that will secure its battery supply for a decade.
It has agreed deals with leading battery makers CATL and LG Chem to ensure the multi-billion dollar supply of lithium ion batteries for next-generation Volvo and Polestar models.
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.
'The future of Volvo Cars is electric and we are firmly committed to moving beyond the internal combustion engine,' said Håkan Samuelsson, president and CEO of Volvo Cars. 'Today's agreements with CATL and LG Chem demonstrate how we will reach our ambitious electrification targets.'
Martina Buchhauser, senior vice president for procurement at Volvo Cars, added, 'With today's agreement we effectively secured our battery supply for the upcoming decade. By having two suppliers available in each region we also ensure that we have flexibility in our supply chain going forward.'
Volvo Cars' first battery assembly line is currently under construction at its manufacturing plant in Ghent, Belgium, and will be finalised by the end of this year.