With an investment of 30 billion yuan, Volvo officially announced that it will build its own battery factory

[News-Oxcart Network]

Volvo Cars recently announced that it will join hands with European battery manufacturer Northvolt to build a power battery factory in Gothenburg, Sweden.

The plant is designed to have an annual production capacity of 50 GWh, plus an R&D center, with a total investment of SEK 30 billion (about 20.8 billion yuan). Construction of the new plant is scheduled to begin in 2023 and production will begin in 2025. Batteries for the next-generation Volvo electric models, as well as those from Polestar Cars, will be supplied by the plant, which is expected to supply batteries to 500,000 cars a year.

Volvo Cars announced in March last year that it would fully electrify by 2025, with 50% of all-electric models accounting for sales and only all-electric models sold by 2030.

To achieve this goal, Volvo's recent transformation efforts have accelerated: on the one hand, it is listed on the Stockholm Stock Exchange in Sweden to raise more transformation funds, and on the other hand, it is accelerating the launch of pure electric models , the C40 Recharge, which was unveiled at last year's Guangzhou Motor Show, is said to be officially listed in the Chinese market this year.

Northvolt is currently a rising star in the European power battery market, and in December last year, it officially rolled off the first battery and won the title of the first European company to design and manufacture power batteries. In addition, Northvolt is backed by the Volkswagen Group and has already won orders from OEMs such as BMW, Fluence, Scania, Volkswagen, Volvo Cars and Polestar.