Volvo Car, Northvolt Partner For Europe's EV Battery Factory: Report

Geely Automobile Holdings Ltd GELYY owned Volvo Car Group, and Swedish battery maker Northvolt AB will jointly build an electric-car battery factory, Bloomberg reports.
The factory will have a capacity to produce 50-gigawatt hours of cells a year in 2026 and complement Volvo's transition to only battery-powered cars by 2030. It is estimated to employ around 3,000 people, Reuters reports.
Northvolt will become Volvo Cars' exclusive battery cell production partner in Europe. Volvo plans to source battery cells from that plant in 2024.
The companies also will establish a joint research and development center in Sweden. The center will be operational in 2022.
Electric successor to Volvo's XC60 model will mark its battery cell debut under the collaboration.
Former Tesla Inc TSLA executive founded and Volkswagen AG VLKAF VLKPF backed Northvolt is leading Europe's efforts to build a domestic supply chain for lithium-ion batteries. Northvolt raised $2.75 billion in its most significant financing round yet.
Price action: GELYY shares closed higher by 4.28% at $61.21 on Friday.