Volkswagen Group (XETRA:VOW) has signed battery manufacturer Northvolt up for a 10-year battery order deal worth US$14bn to the Swedish company.
The deal builds on VW’s announcements last week about its plans to vastly expand production capacity for its electric car strategy.
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As part of the partnership agreement, Northvolt’s gigafactory in Sweden will be significantly expanded beyond the 40GWh capacity it was targeting and it has agreed to sell its joint venture share in its factory in Salzgitter, Germany to Volkswagen.
This latest agreement brings the battery maker’s total contracts to US$27bn in the two years since it raised $1bn in financing in 2019.
Northvolt said it is now aiming for 150GWh annual cell production in 2030, distributed across several gigafactories.