Volvo Cars has sealed long-term, multi-billion dollar agreements with Asian manufacturers CATL and LG Chem to supply lithium ion batteries over a subsequent decade to models from a namesake code and auxiliary Polestar, a association pronounced Wednesday.
The understanding is essential to assisting Volvo strech a idea of carrying full-electric cars criticism for half of a tellurian sales by 2025.
“The destiny of Volvo Cars is electric and we are resolutely committed to relocating over a inner explosion engine,” CEO Hakan Samuelsson said in a release. “Today’s agreements with CATL and LG Chem denote how we will strech a desirous foundation targets.”
For LG Chem, a understanding is an prolongation of a Volvo business as it already provides a batteries for plug-in hybrid variants of models such as a XC90, XC60 and V60.
Volvo’s initial battery public line is underneath construction during a car prolongation plant in Ghent, Belgium, and will be prepared by year-end to start provision a full-electric chronicle of a XC40 compress SUV, that will be suggested after this year. Plug-in hybrid variants of a XC40 are already done in Ghent.
Both vehicles will be on a highway by 2020.
In addition, both battery-driven models will use a Compact Modular Architecture (CMA) that Volvo grown with Chinese sister code Geely Automobile. CMA also underpins a 01, 02 and 03 from kin code Lynk CO.
The full-electric XC40, Polestar 2 and Lynk CO 01 will be built on a singular prolongation line during a Volvo-operated plant in Luqiao, China.
Volvo also skeleton to offer full-electric models underpinned by a second era of a Scalable Product Architecture, called SPA2.
China’s CATL and LG Chem of South Korea have battery contracts with mixed automakers. Both are personification a pivotal purpose in boosting a outlay of EV batteries in Europe.
LG Chem was a initial Asian retailer to open a battery plant in Europe when it started prolongation during a new Poland trickery final year prolongation cells for Daimler, Porsche, Volvo, Audi, Renault and Jaguar.
The association is already formulation to enhance annual ability to 70 gigawatt hours in a subsequent few years from about 3 to 5 GWh now, according to Polish media reports that quoted Jong Hyun Kim, boss of LG Chem Energy Solutions.
CATL, brief for Contemporary Amperex Technology Ltd., is scheduled to start prolongation during a 240 million euro bureau in Erfurt, Germany, in 2022. That bureau that will start by provision BMW.
When asked either Volvo will also be granted by a Erfurt plant a orator told Automotive News Europe in an email that a association would not criticism on sites though combined that both suppliers would be benefaction in Europe, Asia and a United States.