Volvo signs long-term battery supply deal with LG Chem & CATL
By Akshay Kedari  Date: 2019-05-17

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

The U.S. has recently sought to limit dominance of China in EV supply chain.

Swedish luxury vehicle company Volvo Cars Group has reportedly announced that it has signed a long-term agreement with Asian companies Contemporary Amperex Technology Co Ltd (CATL) and LG Chem for battery supply. The move comes as a push to the Volvo’s electric vehicle (EV) target of 50 percent of sales by the year 2025.  

Reportedly, the deal has followed several pacts between global carmakers and Asian battery companies, who have planned to increase their spending on EV technology up to $300 billion over the decade.

Long-term arrangements for battery supply seemingly help to clear supply bottleneck at a time of soaring demand and hold out the promise of cheaper batteries over time. Thus, they are much valued by investors and carmakers.

Volvo Cars has reportedly been investing around $1 billion a year, which totals about 5 percent of its annual revenue, on driverless and electric cars.

Volvo cars will be introducing EV models under the Polestar and Volvo marquee to take on the global peers, such as Tesla, General Motors and Volkswagen.

Reportedly, Volvo has plans to get 50 percent of its sales from fully electric cars by the year 2025. The company foresees its margins on electric cars to match the vehicles equipped with combustion engines by that time.

Hakan Samuelsson, CEO and President, Volvo Cars, reportedly noted that the future of Volvo Cars is electric, and the company is firmly committed to move beyond the internal combustion engine.

Apparently, the batteries by European automakers are typically sourced from companies in Japan, China and South Korea, which dominate the EV batteries supply chain.

The U.S. has recently sought to limit dominance of China in EV supply chain.

The deal of Volvo has raised the shares of CATL and LG Chem over 3 percent, cited reliable sources.

The financial terms of the deal have not been disclosed yet. But the companies have reportedly stated that the battery deals were valued at several billion dollars.

 

Source credit: https://in.reuters.com/article/us-lg-chem-volvo/volvo-signs-ev-battery-supply-deals-with-lg-chem-catl-idINKCN1SL0C0

https://www.media.volvocars.com/global/en-gb/media/pressreleases/252485/volvo-car-group-signs-multi-billion-dollar-battery-supply-deals-with-catl-and-lg-chem

About Author

Akshay Kedari    

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

Abcam & Cancer Research UK join forces to accelerate cancer research
Abcam & Cancer Research UK join forces to accelerate cancer research
By Akshay Kedari

Cancer Research UK, one of the world's biggest independent funder of cancer research, has recently joined forces with Abcam plc, a leading developer of life science tools and reagents, to commercialize and develop novel custom antibodie...

Kerbal Space Program unveils new ESA missions simulation update
Kerbal Space Program unveils new ESA missions simulation update
By Akshay Kedari

Kerbal Space Program, a space flight simulator video game, has launches its new Shared Horizons update across the European frontier. Reportedly, this new update would allow players to recreate ESA (European Space Agency) missions to Mercury and to a ...

Google acquires Canadian augmented reality wearables firm North
Google acquires Canadian augmented reality wearables firm North
By Akshay Kedari

In a recent turn of events, a Canada based augmented reality (AR) wearables company North, has reportedly been acquired by Google for an undisclosed valuation. Based on the reports from Globe and Mail, the deal accounted for USD 180 million. For tho...

Librestream raises $24M through CBGF-led Series-D funding round
Librestream raises $24M through CBGF-led Series-D funding round
By Akshay Kedari

Winnipeg based augmented worker enterprise solutions provider, Librestream, has reportedly raised an amount of $24 million through a Series-D funding round led by Canadian Business Growth Fund (CBGF). The company will use the procured funds to boost ...

John Lewis to soon unveil its biomethane gas filling station
John Lewis to soon unveil its biomethane gas filling station
By Akshay Kedari

UK-based retail giant, John Lewis Partnership has recently announced construction of its dedicated biomethane gas filling station in an effort to curb carbon emission. This move is deemed to be a part of the its vision to become carbon neutral across...