Electric vehicle battery maker Northvolt plans to expand its Gigafactory in Sweden to accommodate an order worth $14bn to supply EV battery cells to Volkswagen over the next 10 years.
The European batteries maker indicated in a statement on Monday that its collaboration with the German carmaker would also see Volkswagen increasing its stake in Northvolt.
Volkswagen, which plans to scale up its own EV battery-making plans in Europe will buy Northvolt’s stake in their joint venture, Northvolt Zwei, in Salzgitter, Germany, the batteries maker noted.
The collaboration comes close on the heels of an announcement made by the German carmaker on Mar 5 to increase its focus on EVs. The company plans to increase its EV sales in the US and China to at least half of its total deliveries by 2030.