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.