European Chemical Industry News & Insights

Volvo and Northvolt to Open 3,000-Job Battery Plant in Gothenburg

At a glance
  • The new battery plant in Gothenburg will start operations in 2025 and create up to 3,000 jobs.
  • The plant is part of a SEK 30 billion investment and will produce 50 GWh of battery cells annually.
  • Construction begins in 2023, focusing on next-gen electric Volvo and Polestar cars.
  • The plant will use fossil-free energy and integrate circularity and resource efficiency.

New Battery Plant in Gothenburg

Volvo Cars and Northvolt have chosen Gothenburg, Sweden, for a new battery manufacturing plant, set to begin operations in 2025. This facility will create up to 3,000 jobs and is part of a SEK 30 billion investment, which includes a planned R&D center announced in December.

Production Capacity and Timeline

Construction of the plant will start in 2023. Once operational, it will produce state-of-the-art battery cells specifically for next-generation pure electric Volvo and Polestar cars. The plant will have an annual production capacity of up to 50 gigawatt hours (GWh), enough to supply batteries for approximately half a million cars per year.

Strategic Location and Benefits

The plant will be located in Torslanda, Gothenburg, offering direct access to Volvo Cars’ largest car plant, infrastructure, renewable energy supply, and relevant job competences. Its proximity to both Volvo Cars’ and Northvolt’s R&D units is also a significant advantage.

Sustainability Focus

Sustainable production is a core aspect of the partnership between Volvo Cars and Northvolt. The plant will be powered by fossil-free energy and will integrate engineering solutions prioritizing circularity and resource efficiency. This approach aims to reduce the environmental footprint of battery sourcing and production.

Recruitment and Leadership

The joint venture will be a major player in European battery cell production. Former Tesla executive Adrian Clarke has been appointed to lead the production company. The R&D center, operational in 2022, will create several hundred jobs, while large-scale recruitment of operators and technicians will begin in late 2023.