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Northvolt, a European power lithium-ion battery manufacturer, has a growing circle of friends.

On June 21st, Volvo Car Group announced plans to establish a joint venture with Swedish battery manufacturer Northvolt to develop and produce more power lithium-ion batteries specifically for its next generation pure electric Volvo cars and Polestar cars. The two companies will each hold 50% of the shares in the joint venture.

According to the plan, the joint venture company will build a power lithium battery super factory in Europe, with a planned production capacity of 50GWh, and is expected to be completed and put into operation in 2026.

It is reported that the power lithium batteries produced by the joint venture company will be first installed on the pure electric version of the upgraded Volvo XC60. Volvo stated that it plans to sell half of its cars as pure electric vehicles by 2025 and aims to sell all models as pure electric vehicles by 2030.

Before the new factory was built and put into operation, Volvo stated that it will purchase 15GWh of batteries annually from Northvolt's existing Skellefte factory starting from 2024 to meet its power lithium battery demand in the European market.

In addition, Volvo Car Group and Northvolt also plan to establish a research and development center in Sweden to develop the next generation of state-of-the-art battery and automotive integration technology, which will begin operation in 2022.

In addition to collaborating with Northvolt in the battery field, Volvo Car Group also stated that it will release more specific information on its future technology roadmap at the Volvo Cars TechMoment on June 30th this year.

It is worth noting that as the "Ningde era of Europe", Northvolt has deeply "bound" with multiple mainstream European car companies and established joint ventures.

At the Volkswagen Group's "PowerDay" held in March this year, Volkswagen stated that it expects to establish six super battery factories with related battery companies by 2030, with a total production capacity of 240GWh/year.

In March, Northvolt announced that the company had secured a battery order worth $14 billion from Volkswagen Group over the next decade, and Volkswagen Group would also increase its stake in Northvolt.

Northvolt also stated in the announcement that the company will acquire shares in Volkswagen Group's joint venture battery factory located in Salzburg, Germany, which will be the second 40GWh/year super battery factory among Volkswagen's six battery factories.

In addition, in July 2020, Northvolt also signed a long-term power lithium battery supply contract with BMW Group, with a contract amount of approximately 2 billion euros.

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