[Eshan Joshi]

Volvo is building its own battery packs; the aim is to make them safer by having them integrate better into their vehicles.The automaker's first EV, the XC40 Recharge, will be the first vehicle with a pack built by Volvo.In addition to creating the hardware, Volvo will work on the software algorithms for the battery system and push over-the-air updates that will potentially extend the range.
Electrification will become a larger part of the company's offerings, with a goal to make 50 percent of its global sales be battery-electric vehicles by 2025.
The automaker invested $60 million on battery lab at its Gothenburg, Sweden, headquarters. Here Volvo puts its packs and modules through rigorous testing. The first portion is complete at a price of $25 million, with the second area currently under construction. And there's available room for a third if it's needed.
It currently sources two different battery types for its vehicles. For the China market, CATL supplies the automaker with cylindrical cells like the ones found in Teslas, while LG Chem supplies pouches for the rest of the markets.

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