Volvo: multi-billion dollar deal for batteries

Volvo: multi-billion dollar deal for batteries

Volvo has announced the signing of a "multi-billion dollar" deal with Chinese and Korean giants CATL and LG Chem. The Scandinavian brand thus ensures a supply of cells to manufacture batteries in sufficient number.

These days, manufacturers are engaged in a hellish race based on difficult negotiations to secure a sufficient supply of batteries for the future. And for that, we must turn irremediably to the Asians, who have the absolute monopoly. Even Tesla , who is well placed on the subject, does not produce its batteries: the brand is content to assemble them, since they are provided by Panasonic.

Volvo , for its part, has just concluded a multi-billion dollar deal with CATL and LG Chem, the first being Chinese and the second Korean. CATL is currently the world leader in the battery, and this is not the first supply agreement that the giant has signed with a manufacturer since it is already associated with BMW .

Volvo, however, has a big advantage over BMW: "in China, the battery supply will benefit from the scale of the Geely group, more important". This may explain the speed with which Volvo has signed such an important agreement with CATL.

The Swedish manufacturer explains that the partnership with CATL and LG Chem will ensure a supply of batteries for at least ten years.