Volvo is looking for a new battery supplier for its electric flagship EX90, which is manufactured in the US. The EX90 is currently produced in Ridgeville, South Carolina, and is equipped with batteries from Chinese manufacturer CATL.
The reason for the intended switch to an American manufacturer is simple. Batteries from China have gotten expensive in the US following a wave of tariffs on battery cells and materials. They now stand at 25 per cent. Because of that, Volvo had to increase prices for its electric SUV. The EV now starts at $79,995 with shipping, which is about 3,300 dollars more than previously announced. When production started, it was priced at $76,695.
“We’re looking to try and find if we can get a local battery manufacturer in the U.S. to help us minimize those costs,” Volvo Cars CEO Jim Rowan said on a call with analysts last week, quoted by Automotive News. “That’s an ongoing project for us right now.”
On the shortlist are, for example, SK On and AESC, both of which produce in the US. SK On’s battery factory in Commerce, Georgia, is only about 250 miles from the Volvo plant. It has an annual capacity of 300,000 battery packs, which it also supplies to other OEMs such as Volkswagen and Ford.
AESC Is also building a battery plant in South Carolina, which should come online next year. It also recently announced an extension for the factory to supply the BMW plant in Mexico with batteries for the Neue Klasse electric cars from 2027. The company also has a factory in Bowling Green, Kentucky, designed for an annual capacity of 30 GWh.
Volvo started production in mid-2024, about half a year later than initially planned. The Volvo EX90 will be available in three variants: Single Motor (RWD), Twin Motor (AWD), and Twin Motor Performance (AWD). The Single Motor (RWD) variant with 205 kW and 490 Nm of torque takes 8.4 seconds to accelerate from 0 to 100 kph and has a top speed of 180 kph. A 104 kWh battery pack gives it a WLTP range of about 580 km.
