Published on May 16th, 2019 | by Daniel Sherman Fernandez


Volvo’s Battery Suppliers Confirmed

Volvo Car Group has signed long-termagreements with leading battery makers CATL and LG Chem to ensure themulti-billion dollar supply of lithium ion batteries over the coming decade fornext generation Volvo and Polestar models.

The agreements cover the global supply ofbattery modules for all models on the upcoming SPA2 and the existing CMAmodular vehicle platforms and represent a major step towards realising VolvoCars’ ambitious electrification strategy.

T8 Twin Engine on SPA

In 2017 Volvo Cars made theindustry-leading commitment that all new Volvo cars launched from 2019 would beelectrified. The company has since reinforced this strategy, by stating that itaims for fully electric cars to make up 50 per cent of its global sales volumeby 2025.

“The future of Volvo Cars is electric andwe are firmly committed to moving beyond the internal combustion engine,” saidHåkan Samuelsson, president and CEO of Volvo Cars. “Today’s agreements withCATL and LG Chem demonstrate how we will reach our ambitious electrificationtargets.”

CATL of China and LG Chem of South Koreaare renowned battery manufacturers, both of which have long and successfultrack records supplying lithium ion batteries to the global automotiveindustry. They fulfil Volvo Cars’ strict sourcing guidelines in terms oftechnology leadership, responsible supply chains and competitive cost models.In China, battery supply will benefit from the scale of the wider Geely Group.

Plug-in hybrid battery pack mounted in an XC40 at Volvo Cars’ Ghent plant

“With this agreement we effectively securedour battery supply for the upcoming decade,” said Martina Buchhauser, seniorvice president for procurement at Volvo Cars. “By having two suppliersavailable in each region we also ensure that we have flexibility in our supplychain going forward.”

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

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

The upcoming SPA2 architecture is the nextgeneration of Volvo’s in-house developed Scalable Product Architecture (SPA)and will be launched early next decade. SPA is one of the most advanced vehicleplatforms in the car industry and currently underpins all Volvo models in the90 and 60 Series. The first Volvo to be launched on SPA2 will be the nextgeneration of the XC90 large SUV.

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

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