Deals with LG Chem and CATL will help the automaker meet its goal of having half of its sales be pure EVs by 2025.
Overnight Volvo Cars inked a long term multi-billion dollar lithium-ion battery supply deal with LG Chem and CATL, an important step in meeting its lofty electrification goals.
Last year Volvo said it was aiming to have half of its sales be fully electric cars by 2025, easily trumping its earlier commitments.
Håkan Samuelsson, CEO of Volvo Cars, says the automaker is "firmly committed to moving beyond the internal combustion engine" and today's agreements show "how we will reach our ambitious electrification targets".
Martina Buchhauser, head of procurement at Volvo, believes the deals have "effectively secured our battery supply for the upcoming decade".
Volvo says both suppliers were able to meet both its cost targets, as well as its "strict sourcing guidelines".
Although the company has a wide selection of plug-in hybrid models, Volvo has yet to produce a pure electric vehicle. Its first fully electric model, a version of the XC40 crossover, goes into production later this year.
Batteries delivered as part of the new deals will be used in upcoming electric models based on the Compact Modular Architecture, which currently underpins the Volvo XC40 and Lynk & Co range, as well as the second generation of the Scalable Product Architecture used by everything from the S60 up to the XC90.