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CATL and Volvo Cars sign long-term agreement in lithium ion batteries deal

The China-based battery manufacturer and technology firm, Contemporary Amperex Technology Co. (CATL), and the world’s top tier OEM Volvo Car Group (Volvo Cars) has signed a long-term agreement to ensure multi-billion-dollar supply of lithium ion batteries during the next decade for next generation Volvo and Polestar models.

It is expected that the agreement will cover the global supply of battery modules for all models on the upcoming SPA2 as well as the existing CMA modular vehicle platforms.

From the beginning of 2017, Volvo Cars confirmed it would begin the process of overall electrification as a forward-looking pioneer in the automotive sector.


With customers at the forefront of CATL’s decision-making, CATL will offer localized services in collaboration with a local team in Sweden for localised battery supply services as well as more efficient communications.

In order to help Volvo Cars’ enhance the sustainability, transparency and efficiency of its overall supply chain, CATL is anticipated to follow Volvo Cars’ sustainable development strategy by utilising clean energy for battery production, tracking and managing raw material supply.

The agreement will be seen as a significant step towards accomplishing Volvo Cars’ electrification strategy as well as CATL’s global development. A spokesperson for CATL commented: “CATL and Volvo share the same vision in this new energy career, so we choose to realize it together. With advanced and reliable battery solutions, we will support Volvo to create world-leading electric vehicles that serve global consumers.”


Supply Chain Digital Weekly