Volvo signs long-term battery supply deal with CATL, LG Chem

Volvo has signed a long-term battery supply deal with CATL and LG Chem. As part of the deal, the Swedish carmaker will secure the supply of lithium ion batteries for its Volvo and Polestar models for the coming decade. Contemporary Amperex Technology (CATL) is a Chinese battery manufacturer while LG Chem is from South Korea.

In 2017, Volvo said that from 2019, the company would launch only electric and hybrid cars. The company also aims for electric vehicles to account for 50% of all its cars sales by 2025.

Volvo’s first battery assembly line is currently under construction. It is located at its manufacturing plant in Ghent, Belgium and is expected to be finished by the end of the year. The facility, which manufactures plug-in hybrid versions of the XC40, could manufacture the all-electric XC40.

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