[YesAuto Industry] On May 15th, CATL officially announced that it has reached a cooperation with Volvo Cars and became one of its global power battery partners to provide power batteries for next-generation electric vehicles and Polestar models. According to the agreement, CATL will supply battery modules for Volvo's upcoming automotive development platform SPA2 platform and mature CMA platform on a global scale.
Subsequently, Volvo also issued an announcement stating that it had signed a power battery order worth billions of dollars, but covered two power battery suppliers, one is CATL and the other is LG Chem, a South Korean battery company.
Volvo is planning to increase sales of pure electric vehicles to 50% around 2025. Volvo said that through long-term cooperation with the two companies, it will guarantee its battery supply for the next ten years. Currently, Volvo Car's first battery assembly line is under construction at the Ghent plant in Belgium and is expected to be completed by the end of this year. The first pure electric model produced at the Ghent plant will be Volvo's new XC40. The plug-in hybrid model of the XC40 has been put into production at the Ghent plant.
CATL stated that it will send a local team in Sweden to provide localized services for Volvo in order to establish a more efficient communication channel and a more timely response mechanism. In addition, CATL will also follow Volvo’s sustainable development strategy requirements in this cooperation, use clean energy for battery production, and track the raw material supply chain to help Volvo improve the efficiency and availability of the overall supply chain. Sustainability and transparency.
In addition, according to the plan, CATL's overseas factories will meet part of the capacity demand of the order. Currently, CATL is setting up a battery production base and an intelligent manufacturing technology research and development center in Erfurt, Thuringia, Federal Republic of Germany. The project will invest 240 million euros (approximately 1.87 billion yuan) and will be constructed in two phases. It will be mainly engaged in the research and development and production of lithium-ion batteries.
Up to now, a large number of international car companies have reached cooperation with CATL, including Volkswagen, BMW, Daimler, etc., but most of the battery orders are only for vehicles sold in China. Reaching cooperation with Volvo on a global scale is another important milestone for CATL to expand its global market.