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Volvo Cars and battery recycling firm Northvolt are building a 3,000-person battery plant in Gothenburg, Sweden.

The plant, which will create 3,000 new jobs is expected to begin operations in 2025 and complement the planned research and development centre announced by the two companies in December.

Construction on the new battery plant will begin in 2023 and will produce battery cells specifically developed for use in the next generation of electric Volvo and Polestar cars. 

The plant is expected to have an annual cell production capacity of up to 50 GWh – enough power for around half a million cars per year. 

The new battery factory will be located in Torslanda, some 15 km to the west of Gothenburg city centre. This location also gives excellent access to Volvo’s largest factory in Gothenburg. 

“Our battery cell partnership with Northvolt is key to our strategic ambitions in electrification,” says Håkan Samuelsson, Volvo Cars Chief Executive. “We are committed to becoming a leader in the premium electric car segment and selling only pure electric vehicles by 2030.”

Volvo says that the plant will also be powered purely by fossil-free electricity and will focus on driving renewable energy capacity in the region. What’s more, engineers at the plant will work on solutions that prioritise circularity and resource efficiency.

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,” says Javier Varela, Head of Engineering and Operations at Volvo Cars. “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.”

This new battery plant and the previously announced R&D centre will, according to Volvo, make the companies significant players in both battery production and will position Volvo as one of the few automotive brands to make battery cell development and production part of its engineering capabilities.

Large scale recruitment for both engineers and team leaders across both sites will begin late next year.

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