Volvo inks multi-billion dollar battery supply agreements with LG Chem and CATL for EVs



Volvo Car Group has inked a massive multi-billion dollar supply handle the Chinese battery maker CATL and Korea’s LG Chem to provide its planned fleet of electric vehicles.

The lithium ion batteries from both suppliers will power the development of Volvo Cars’ electrification plan for its own brand and the company’s Polestar joint venture with Chinese auto manufacturer Geely.

Deals with the two companies cover the global supply of battery modules for all models on the upcoming SPA2 and CMA modular vehicle platforms, Volvo said in a statement.

Back in 2017, Volvo . Committed that its new vehicles all launched after 2019 would be electrified and this marks a huge step in making that commitment a reality, the company said.

Volvo expects 50 percent of its sales volume from 2025 to be comprised of vehicles.

“The future of Volvo Cars is electrical and we are firmly committed to moving beyond the internal combustion engine,” said Håkan Samuelsson, president and CEO of Volvo Cars, in a statement. “Today’s agreements with CATL and LG Chem demonstrate how we’ll reach our ambitious electrification targets. ”

Volvo’s got a battery assembly line now under construction at its plant in Ghent, where it expects its first fully-electric XC40 small SUV to be rolling off the assembly line by the year’s end.

Earlier this year, Volvo showed new powertrain options for its model range. The company upgraded its T8 and. T6 Twin Engine plug-in hybrid now has plug-in options for every model the company makes and powertrains.

Just three months ago Volvo unveiled its first all-electric vehicle design for Polestar, its joint venture with Geely. And the Polestar 2 are the vehicle to reap the fruits of the battery supply agreement with LG and CATL.

Polestar unveils its all-electric response to the Tesla Model 3

The prices between Polestar and the battery makers cover the supply of lithium ion battery modules for the portfolio of Polestar vehicles over the next ten decades, starting with its first fully electric car, the Polestar 2, in 2020.

“With these suppliers in place we have the knowledge that high quality batteries will power our performance cars that our clients can depend on,” remarks Thomas Ingenlath, Chief Executive Officer of Polestar.

This battery supply arrangement comes as roadblocks have emerged to Polestar’s plans to market its new electric car in the U.S. as a direct competitor to Tesla’s Model 3.

Ingenlath told the Los Angeles Times that when the U.S. trade war with China lengthens, the company may need to scrap plans to market in the U.S.

“We would adopt free trade as in the interests of the consumer,” Ingenlath told the LA Times in an interview. He said that the firm wouldn’t export cars to countries because it couldn’t be priced.

Polestar would look to expand or contract its sales presence in the U.S. based on where tariffs land, the executive said. At current levels tariffs on cars manufactured in China are set at 25%.

Buy Tickets for every event – Sports, Concerts, Festivals and more buy tickets

Discover more from Teslas Only

Subscribe now to keep reading and get access to the full archive.

Continue reading