Chinese and Korean battery makers have signed deals to secure the “multi-billon-dollar” long-term supply of electric vehicle batteries for Swedish car firm Volvo.
Volvo said today the agreements with Contemporary Amperex Technology (CATL) and LG Chem would ensure supplies of lithium-ion batteries over the coming decade for its next-generation Volvo and Polestar models.
The agreements cover the global supply of battery modules for all models on the upcoming SPA2 and the existing CMA modular vehicle platforms.
Volvo said the battery companies met “strict sourcing guidelines in terms of technology leadership, responsible supply chains and competitive cost models”. In China, battery supply “will benefit from the scale of the wider Geely Group“.
Volvo Cars CEO and president Håkan Samuelsson said: “The future of Volvo Cars is electric and we are firmly committed to moving beyond the internal combustion engine. The agreements with CATL and LG Chem demonstrate how we will reach our ambitious electrification targets.”
Volvo Cars’ first battery assembly line is under construction at its manufacturing plant in Ghent, Belgium. It will be finalised by the end of this year.