As part of its push to electrify half of its cars by 2025, Volvo has signed deals with two Asian battery producers to help power upcoming electrics like its XC40 compact SUV.
The Swedish carmaker says it has signed long-term agreements with battery makers CATL and LG Chem to supply the lithium ion batteries needed for new car models.
“The future of Volvo Cars is electric and we are firmly committed to moving beyond the internal combustion engine,” Volvo chief executive Hakan Samuelsson said.
Volvo in 2017 said it planned to phase out internal combustion engines, and has since stated that it aims for fully electric cars to make up 50 per cent of its global sales volume by 2025.
The announcement comes weeks after Volvo Cars revealed several electrified powertrain options it’s planning across its entire model range.
The existing T8 Twin Engine plug-in hybrid powertrain has been updated and plug-in options are now available on every model it produces.
The carmaker is building its first battery assembly line at its assembly plant in Ghent, Belgium. The first fully electric Volvo to be built in Ghent will be the XC40 small SUV.
The Ghent plant currently makes plug-in hybrid variants of the XC40.
The China-based Zhejiang Geely Holding Group took over ownership of the Swedish carmaker in 2010 from US automotive giant Ford. – dpa
