Sweden based luxury car manufacturer Volvo Car Group AB (STO: VOLV) announced having entered into a partnership with Swedish battery manufacturer Northvolt to develop and produce sustainable batteries for its electric vehicles.
The two parties will set up a gigafactory in which production of these batteries will be taking place. Additionally, they will also come up with a research and development center in Sweden.
The chief executive officer of Volvo, Håkan Samuelsson, said production activities in the gigafactory will start in 2022 and it will be producing up to 50 gigawatt hours (GWh) per year up to the year 2026.
“Working closely with Northvolt will also allow us to strengthen our in-house development capabilities,” said the CEO.
This gigafactory will be powered by clean energy and it’s expecting to provide job opportunities for around 3,000 people. The location of this gigafactory was not revealed however, the parties said they will keep on providing updates on the project.