Samsung SDI, Volvo to develop electric truck batteries

South Korean battery firm Samsung SDI has formed a strategic alliance with Swedish truck maker Volvo Group to develop and produce power packs for the company's electric commercial vehicles, as it positions itself to capitalise on a large new wave of transportation electrification.

The partnership with Samsung SDI will accelerate the development of Volvo's line of electric trucks, buses and boats, Volvo said. Samsung SDI will provide battery cells and modules to power a wide range of heavy vehicles that Volvo is developing with common architecture and shared technologies — from 18t buses to 20t excavators to 44t lorries.

Samsung SDI, which is South Korea's second-largest maker of electric vehicle (EV) batteries behind LG Chem, said the alliance is an opportunity for it and Volvo to secure market leadership in the electrification of heavy-duty vehicles.

Volvo Group is the world's fifth-largest maker of heavy trucks and owns a 45pc stake in the third-biggest producer, China's Dongfeng Commercial Vehicles. The company is keen to speed up the electrification of its products after completing a pilot test with a quarry operation that was run on electric vehicles and equipment. The study showed a 98pc reduction in carbon emissions, 70pc decline in energy costs and 40pc drop in operator costs.

Volvo Group is separate from Swedish auto maker Volvo Car Group. LG Chem earlier this year won a contract to supply batteries for Volvo EVs. The deal is potentially huge because Volvo Car Group aims for EVs to make up half of its global sales volume by 2025. The company was acquired in 2010 by China's Geely, which also bought an 8.2pc interest in Volvo Group last year.