Northvolt, Volvo to set up sustainable gigafactory in Europe

Swedish battery maker Northvolt and automotive manufacturer Volvo Car Group plan to set up a gigafactory in Europe for the development of sustainable batteries to power the next generation of Volvo’s electric fleet, they said on Monday June 21.

The companies will create a 50/50 joint venture to initially establish a research and development center in Sweden in 2022 for the development of battery cells and vehicle integration technologies.

The joint venture will subsequently establish a new gigafactory in Europe from 2026 with a planned capacity of 50 GWh per year. The gigafactory will be powered 100% by clean energy, the companies said.

Volvo also aims to source an additional 15GWh of battery cells per year from the existing Northvolt Ett battery plant in Skelleftea, Sweden from 2024.

The Swedish automaker has ambitious plans for its shift to green mobility. It aims to sell 50% pure electric cars by 2025 and to sell only full EVs by 2030.

What to read next
Volatile BRM prices can generate uneven profits and highlight the need for risk management
Manganese, chrome, tungsten and vanadium will be key topics of discussion at Fastmarkets' upcoming Asia Ferroalloys Conference 2024 in Hong Kong on February 26-28, after appearing on China's latest list of critical minerals
Lepidolite producers in China have been a major wildcard in the lithium industry of late, with production surging despite its higher cost, energy-intensive nature.
Total EU soybean import for the year to date reaches 7.2 million tonnes, with Spain, Netherlands, Germany, Italy and Portugal being the main importers
Financial incentives for companies developing silicon-based anodes in Europe are helping to support the sector, but the focus on innovation, not scale, risks them falling behind North America, experts told Fastmarkets.
Despite auto manufacturers' clear demand and willingness to pay a premium for green steel, understanding of the product varies widely in the industry, with larger OEMs like Ford, General Motors, and Volvo actively competing for its limited supply