Volvo Cars eyes new battery partner after Northvolt split: 'Now we have to look in other directions'

Volvo Cars' new CEO Håkan Samuelsson states that producing batteries in-house is essential for remaining competitive in the electric vehicle market. Following Northvolt’s bankruptcy, the automaker needs to find a new partner to proceed with its battery production plans.

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"In-house battery manufacturing is something that is important to us. Exactly how we will do that, I’ll have to come back to," Samuelsson told Swedish newschannel Ekot.

As the automotive industry shifts towards electrification, batteries are becoming an increasingly critical component. Samuelsson compares the current situation to earlier dynamics within the car industry.

"If you are a leading electric car manufacturer, I think it’s very important to have control over your own battery production to be competitive in terms of performance development, battery efficiency, and reducing costs. It’s just like how it used to be a significant advantage to have your own gasoline engine when building cars," Samuelsson told Ekot.

Looking for a new partner

Volvo Cars previously planned to establish a battery factory in Gothenburg in partnership with Northvolt. Now, with the battery manufacturer’s bankruptcy, the company faces the challenge of finding a new partner with the right technological expertise.

“We need to look at how we can find a partner who can help us. It’s about battery manufacturing technology – where the plan was to use Northvolt’s technology, but now we have to look in other directions,” Samuelsson told Ekot.

The location of future battery production remains undecided. The previously planned factory in Gothenburg is still a possibility.

"It’s not ruled out, but it’s something we have to look at. We have a starting point in the form of a building, but we lack the technology," Samuelsson told Ekot.