Volvo Car Group has signed long-term agreements with battery makers CATL and LG Chem to ensure the multi-billion dollar supply of lithium ion batteries over the coming decade for next generation Volvo and Polestar models.

The agreements cover the global supply of battery modules for all models on the upcoming SPA2 and the existing CMA modular vehicle platforms and represent a step towards realising Volvo Cars’ ambitious electrification strategy.

In 2017 Volvo Cars made the industry-leading commitment that all new Volvo cars launched from 2019 would be electrified. The company has since stated that it aims for fully electric cars to make up 50 per cent of its global sales volume by 2025.

CATL of China and LG Chem of South Korea are battery manufacturers, both of which have long and successful track records supplying lithium ion batteries to the global automotive industry.

Last year, LG Chem was tapped as a battery supplier for German carmaker VW.

Volvo Cars’ first battery assembly line is currently under construction at its manufacturing plant in Ghent, Belgium. It will be finalised by the end of this year and the first fully electric Volvo to be built in Ghent is the XC40 small SUV. Already now, plug-in hybrid variants of the XC40 are manufactured there.

The Compact Modular Architecture (CMA) currently underpins the XC40, as well as the fully electric Polestar 2 fastback and several models sold by LYNK & CO, Volvo’s sister brand which it co-owns with Geely. As of this year, all three models will be built on a single production line at a Volvo-operated manufacturing plant in Luqiao, China.

The upcoming SPA2 architecture is the next generation of Volvo’s in-house developed Scalable Product Architecture (SPA) and will be launched early next decade. SPA is an advanced vehicle platform and currently underpins all Volvo models in the 90 and 60 Series. The first Volvo to be launched on SPA2 will be the next generation of the XC90 large SUV.

Earlier this year, Volvo Cars revealed a number of upgraded and newly-developed electrified powertrain options, to be made available across its entire model range going forward. It has upgraded its existing T8 and T6 Twin Engine plug-in hybrid powertrains, with plug-in options now available on every model it produces.