Volvo Car Group, owned by China's Geely Holding, announced plans on Monday (21 June, 2021) for a joint venture with Swedish battery maker Northvolt to develop sustainable batteries for its electric cars and set up a gigafactory for production.

The companies aim to set up a research and development centre in Sweden to begin operations in 2022 and start a gigafactory in Europe with a potential capacity to produce up to 50 gigawatt hours (GWh) per year in 2026.

"Working closely with Northvolt will also allow us to strengthen our in-house development capabilities," said Håkan Samuelsson, chief executive at Volvo Car Group. Northvolt will become Volvo Cars' exclusive battery cell production partner in Europe.