Volvo Cars and battery developer Northvolt are to build a new battery manufacturing plant in Gothenburg, Sweden, which will start operations in 2025 and create up to 3,000 jobs.

The plant in Torslanda will have a potential annual cell production capacity of up to 50 gigawatt hours (GWh), to supply batteries for about half a million cars a year, specifically for next-generation pure electric Volvo and Polestar models.

Construction of the plant, powered by fossil-free energy and which is located near to both Volvo Cars’ and Northvolt’s R&D units, will start in 2023.

The joint venture company is actively recruiting highly skilled engineers and team leaders to advance the project and large-scale recruitment of operators and technicians will begin in late 2023.

Volvo Cars and Northvolt have appointed former Tesla executive Adrian Clarke to lead the production company.

Javier Varela, Head of Engineering and Operations at Volvo Cars said: “Our new battery plant will support our ambition to have a fully climate-neutral manufacturing network and secure a supply of high-quality batteries for years to come.

“Through our partnership with Northvolt, we will also benefit greatly from an end-to-end battery value chain, from raw material to complete car, ensuring optimal integration in our cars.”

Peter Carlsson, Co-Founder and CEO of Northvolt added, “Establishing this gigafactory in Gothenburg is a decisive move, both to continue to transform one of the most dynamic automotive regions in the world, and to become the leading global supplier of sustainable batteries.”

Volvo aims to produce and sell only fully electric cars by 2030.


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