VW orders battery cells worth $14 billion from Northvolt

Northvolt and Volkswagen Group has unveiled the next step in the partnership between the two companies, which was initiated in 2019. The collaboration will place a greater focus on Northvolt's gigafactory in Sweden, which will be further expanded to support a combined order worth more than USD 14 billion over the next 10 years as Northvolt is selected by Volkswagen Group as a strategic lead supplier for battery cells in Europe. With this new order, Northvolt has secured more than USD 27 billion worth of contracts from key customers. "Volkswagen is a key investor, customer and partner on the journey ahead and we will continue to work hard with the goal of providing them with the greenest battery on the planet as they rapidly expand their fleet of electric vehicles," says Peter Carlsson, Co -Founder and CEO, Northvolt in a press release. According to Northvolt, by consolidating cell production to the Swedish gigafactory, the partners will achieve further economies of scale, thereby securing the best possible cost and enabling the lowest environmental footprint in the world for cell production. As Volkswagen Group plans to scale up its own battery manufacturing in Europe, Northvolt will sell its share in the joint venture Northvolt Zwei in Salzgitter to Volkswagen. Volkswagen will at the same time increase its ownership in Northvolt. “Volkswagen will continue to deepen the collaboration and partnership with Northvolt. They are one of our key battery suppliers as we make the transition to electric mobility – and there is potential to expand this partnership even further,” says Thomas Schmall, Chairman of the Board of Management of Volkswagen Group Components.