Northvolt wins $14 billion battery order from Volkswagen

According to foreign media reports, Swedish lithium-ion battery manufacturer Northvolt stated that it has received a 10-year order from Volkswagen of Germany worth more than US$14 billion. Northvolt also said that it will sell its stake in the Salzgitter joint venture Northvolt Zwei to Volkswagen, and Volkswagen will become the sole owner of the German super factory.

Northvolt said in a statement, “By integrating battery production into the Northvolt Ett super factory, partners will achieve further economies of scale, thereby ensuring the best costs and reducing the cost of battery production. The adverse effects of the environment.'

Volkswagen established a partnership with Northvolt in 2019, after Volkswagen previously stated that it holds approximately 20% of the Swedish company. Northvolt plans to play a key role in Europe, competing with Asian battery companies such as CATL and LG Chem. The goal is to have a 25% market share in the European market by 2030. The company said it has obtained more than $27 billion worth of contracts from major customers.

Just last week, Northvolt just announced the acquisition of Cuberg, a US start-up company, in order to obtain technology to increase the range of electric vehicles. Northvolt was founded in 2016, the founder Peter Carlsson is a former Tesla executive. Since its establishment, the company's total financing has exceeded 3.6 billion US dollars. The scale of its last round of financing was US$600 million, with investors including Volkswagen, Baillie Gifford and Goldman Sachs.

As more and more car manufacturers begin to transition to electrification, battery manufacturers all over the world are struggling to keep up with demand. Investors are also rushing to bet on the electric vehicle industry, further pushing up the valuation of electric vehicle companies such as Tesla and Lucid Motors. Volkswagen stated on the 'Battery Day' on March 15 that the company plans to have six battery manufacturing plants in Europe by 2030 to ensure the supply of its electric car batteries. Volkswagen is currently transitioning to battery-powered vehicles.