CATL and LG Chem will be supplying batteries for basically all new Volvo/Polestar models.

Volvo Car Group announced long-term, multi-billion dollar agreements with CATL and LG Chem, securing lithium-ion battery supplies over the coming decade for Volvo and Polestar brand models.

According to the press release, the deal covers batteries for all new models based on:

  • the upcoming SPA2 platform
  • the existing CMA platform

"CATL of China and LG Chem of South Korea are renowned battery manufacturers, both of which have long and successful track records supplying lithium ion batteries to the global automotive industry. They fulfil Volvo Cars’ 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."

All new Volvo cars from 2019 on are to be electrified (at least hybrid), and from 2025 on, the company hopes to reach BEV sales of up to 50% globally.

Håkan Samuelsson, president and CEO of Volvo Cars said:

“The future of Volvo Cars is electric and we are firmly committed to moving beyond the internal combustion engine. Today’s agreements with CATL and LG Chem demonstrate how we will reach our ambitious electrification targets.”

Martina Buchhauser, senior vice president for procurement at Volvo Cars said:

“With today’s agreement we effectively secured our battery supply for the upcoming decade. By having two suppliers available in each region we also ensure that we have flexibility in our supply chain going forward.”

New CMA & SPA2 models

Volvo said also that by the end of this year it will complete its battery pack assembly line in Ghent, Belgium where it currently produces plug-in hybrid XC40 crossover, based on CMA platform.

Soon, the XC40 lineup will be expanded by the addition of an all-electric version, which could become one of the most interesting premium CUVs in Europe and North America.

"Volvo Cars’ first battery assembly line is currently under construction at its manufacturing plant in Ghent, Belgium. It will be finalised by the end of this year and the first fully electric Volvo to be built in Ghent is the award-winning XC40 small SUV. Already now, plug-in hybrid variants of the XC40 are manufactured there.

The Compact Modular Architecture (CMA) currently underpins the XC40, as well as the fully electric Polestar 2 fastback and several models sold by LYNK & CO, Volvo’s sister brand which it co-owns with Geely. As of this year, all three models will be built on a single production line at a Volvo-operated manufacturing plant in Luqiao, China."

Volvo CMA Battery Electric Vehicle Technical Concept Study - Top view
Volvo CMA Battery Electric Vehicle Technical Concept Study - Top view

The SPA platform for 90 and 60 Series Volvo cars was already used for several plug-in hybrid models and with the second-generation SPA2 we could expect probably both improved PHEVs, as well as BEVs for the very first time.

"The upcoming SPA2 architecture is the next generation of Volvo’s in-house developed Scalable Product Architecture (SPA) and will be launched early next decade. SPA is one of the most advanced vehicle platforms in the car industry and currently underpins all Volvo models in the 90 and 60 Series. The first Volvo to be launched on SPA2 will be the next generation of the XC90 large SUV."

The all-new Volvo XC90 Twin Engine powertrain
The all-new Volvo XC90 Twin Engine powertrain
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Volvo Car Group signs multi-billion dollar battery supply deals with CATL and LG Chem

Volvo Car Group has signed long-term agreements with leading battery makers CATL and LG Chem to ensure the multi-billion dollar supply of lithium ion batteries over the coming decade for 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 and represent a major step towards realising Volvo Cars’ ambitious electrification strategy.

In 2017 Volvo Cars made the industry-leading commitment that all new Volvo cars launched from 2019 would be electrified. The company has since reinforced this strategy, by stating that it aims for fully electric cars to make up 50 per cent of its global sales volume by 2025.

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

CATL of China and LG Chem of South Korea are renowned battery manufacturers, both of which have long and successful track records supplying lithium ion batteries to the global automotive industry. They fulfil Volvo Cars’ 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.

“With today’s agreement we effectively secured our battery supply for the upcoming decade,” said Martina Buchhauser, senior vice president for procurement at Volvo Cars. “By having two suppliers available in each region we also ensure that we have flexibility in our supply chain going forward.”

Volvo Cars’ first battery assembly line is currently under construction at its manufacturing plant in Ghent, Belgium. It will be finalised by the end of this year and the first fully electric Volvo to be built in Ghent is the award-winning XC40 small SUV. Already now, plug-in hybrid variants of the XC40 are manufactured there.

The Compact Modular Architecture (CMA) currently underpins the XC40, as well as the fully electric Polestar 2 fastback and several models sold by LYNK & CO, Volvo’s sister brand which it co-owns with Geely. As of this year, all three models will be built on a single production line at a Volvo-operated manufacturing plant in Luqiao, China.

The upcoming SPA2 architecture is the next generation of Volvo’s in-house developed Scalable Product Architecture (SPA) and will be launched early next decade. SPA is one of the most advanced vehicle platforms in the car industry and currently underpins all Volvo models in the 90 and 60 Series. The first Volvo to be launched on SPA2 will be the next generation of the XC90 large SUV.

Earlier this year, Volvo Cars revealed a number of upgraded and newly-developed electrified powertrain options, to be made available across its entire model range going forward. It has upgraded its existing T8 and T6 Twin Engine plug-in hybrid powertrains, with plug-in options now available on every model it produces.