Volvo Signs Investment Agreement Worth 4 Trillion KRW with Swedish Battery Company Northvolt

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Swedish automaker Volvo announced on the 10th (local time) that it has signed an investment agreement worth 30 billion kronor (approximately 3.9 trillion KRW) with Swedish battery company Northvolt, expressing its intention to target the U.S. and Asian markets, according to major foreign media reports on the 13th.

According to the agreement, Volvo and Northvolt will build a joint research center in Gothenburg and also construct a new battery factory in Europe. The site for the new European battery factory will be announced early next year.

The joint research center to be established in Gothenburg aims to begin operations next year. The center will focus on developing new batteries to be used in next-generation pure electric vehicles.

The new European battery factory will be built to supply batteries for approximately 500,000 vehicles. Construction is scheduled to begin in 2023, with production targeted for 2026.

Volvo plans to make 100% of its vehicles electric by 2030. Currently, the electric vehicle ratio is only 3%. The collaboration with Northvolt is intended to accelerate the transition to an electric vehicle system.

H?kan Samuelsson, CEO of Volvo, stated that the collaboration with Northvolt could be expanded to the U.S. and Asian markets in the future. CEO Samuelsson said, "This collaboration is not limited to Europe," adding, "It starts in Europe, but naturally, cars must be made worldwide."

Volvo secured about 20 billion kronor through its listing in October. Since the listing, Volvo's stock price has risen by more than 30%.

Northvolt is one of the most notable battery startups in Europe, with investments from Goldman Sachs, BMW, and IKEA. Peter Carlsson, who founded Northvolt, was an executive at the U.S. electric vehicle company Tesla Motors and established Northvolt after leaving Tesla in 2015.

Northvolt plans to open its first gigafactory in northern Sweden this month and maintains a comprehensive partnership with German automaker Volkswagen.

Founder Carlsson stated that the collaboration with Volvo is aimed at the U.S. and Asian markets. Volvo has factories not only in Sweden and Belgium but also in China and the U.S. Volvo's largest shareholder is China's Geely Automobile.

Founder Carlsson said, "So far, we have focused only on Europe, and that was enough," adding, "Since automotive platforms are globalized, it is natural to also consider the Asian and U.S. markets."

This content was produced with the assistance of AI translation services.