will Volvo Cars Group and Swedish battery manufacturer Northvolt ABAB By building a factory for electric car batteries in the latest step by European manufacturers to localize cell production in the region.
The Chinese-owned automaker and Northvolt will build a plant with a capacity of 50 GWh of cells per year, enough to power about 500,000 cars and complete Volvo’s plan to sell battery-only cars by 2030. The companies will also set up a joint research and development center in Sweden. .
Volvo CEO Håkan Samuelsson said in a statement: “By working with Northflot, we will secure a supply of high-quality, more sustainable battery cells for our pure electric cars. The R&D center will also be operational next year, and the plant is set to start production. In 2026, according to “Bloomberg”, and reviewed by “Al Arabiya.net”.
Volvo is emerging as a surprising leader in the European race to build more electric vehicles. The company has set a goal of selling only electric cars by the end of the decade, and its road map to doing so ranks among the most credible in the industry, according to the nonprofit Transportation and Environment.
Backed by its Chinese owner, Zhejiang Geely Holding Group Co., it has increased spending on electric vehicles and will unveil a new model every year in the first half of this decade.
It comes as Northvolt, founded by former Tesla executives, is spearheading European efforts to build a domestic supply chain for lithium-ion batteries currently dominated by suppliers in Asia. The manufacturer considers Volkswagen a major shareholder and announced earlier this month that it had raised $2.75 billion in its largest funding round to date.
This news comes as Porsche seeks to build a factory for electric car batteries sufficient to meet the demand of 100,000 cars annually, and Ford also penetrated the sector by buying a start-up company, as part of its plan to invest $ 30 billion in the electric car industry by 2030.