Just three months after unveiling its first all-electric vehicle design, Polestar, the joint venture between European automaker Volvo and China’s Geely car manufacturer has inked battery supply agreements with CATL and LG Chem.
The deals are part of multi-billion dollar agreements signed by Volvo Car Group, the company said.
The deals between Polestar and the battery makers cover the supply of lithium ion battery modules for the entire portfolio of Polestar vehicles over the next ten years, starting with its first fully electric car, the Polestar 2, in early 2020.
The suppliers will also be providing batteries for Volvo’s future electric vehicles, the company said.
“With these suppliers in place we have the secure knowledge that our electric performance cars will be powered by high-quality batteries that our customers can rely on,” comments Thomas Ingenlath, Chief Executive Officer of Polestar.
This battery supply agreement comes as roadblocks have emerged to Polestar’s plans to sell its new electric vehicle in the U.S. as a direct competitor to Tesla’s Model 3.
Ingenlath told the Los Angeles Times that if the U.S. trade war with China lengthens, the company may have to scrap plans to sell in the U.S.
“We would embrace free trade as in the interests of the consumer,” Ingenlath told the LA Times in an interview. He said that the company wouldn’t export cars to countries where tariffs would make selling the vehicle impossible because it couldn’t be priced competitively.
Polestar would look to expand or contract its sales presence in the U.S. based on where tariffs land, the executive said. At current levels tariffs on cars manufactured in China are set at 25%.
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