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 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’ electrification strategy. »The future of Volvo Cars is electric and we are firmly committed to moving beyond the internal combustion engine«, so 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.«
»With today’s agreement we effectively secured our battery supply for the upcoming decade«, said Martina Buchhauser, Senior Vice President for Procurement at Volvo Cars. »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. The first fully electric Volvo to be built in Ghent will be the award-winning XC40 small SUV; plug-in hybrid variants of the XC40 are already manufactured there.
The Compact Modular Architecture (CMA) platform currently underpins the XC40, as well as the fully electric Polestar 2 fastback and several models sold by LYNK & CO, Volvo’s sister brand which it co-owns with Geely. As of this year, all three models will be built on a single production line at a Volvo-operated manufacturing plant in Luqiao, China.