NINGDE, China, May 15, 2019 / -- A long-term agreement has been signed between Contemporary Amperex Technology Co., Ltd. (CATL) and the world's top-tier OEM Volvo Car Group (Volvo Cars) to ensure multi-billion-dollar supply of lithium ion batteries over the coming decade for next generation Volvo and Polestar models.

The agreement covers the global supply of battery modules for all models on the upcoming SPA2 and the existing CMA modular vehicle platforms. As early as 2017, Volvo Cars announced its strategic decision of overall electrification as a forward-looking pioneer in car industry. This cooperation represents a major step towards realizing Volvo Cars' ambitious electrification strategy, as well as a milestone in CATL's global development.

Volvo Cars comments, CATL is a renowned battery manufacturer which has long and successful track records of supplying lithium ion batteries to the global automotive industry. It fulfils Volvo Cars' strict sourcing guidelines in terms of technology leadership, responsible supply chains and competitive cost models.

Based on the "customer-centric" cooperation philosophy, CATL will provide localized services with a local team in Sweden for localized battery supply services and more efficient communications. To assist Volvo Cars to improve efficiency, sustainability and transparency of its overall supply chain, CATL will also follow Volvo Cars' sustainable development strategy with using clean energy for battery production, tracking and managing raw material supply. The battery of this deal will also come from CATL's overseas plant.

"CATL and Volvo share the same vision in this new energy career, so we choose to realize it together." A spokesperson of CATL said, "With advanced and reliable battery solutions, we will support Volvo to create world-leading electric vehicles that serve global consumers."