Volvo Cars announced in an announcement on Nov. 8 that it is divesting 33 percent of its Aurobay joint venture with Geely Holdings to Geely Holdings to ensure it can go electric by 2030, thus completely withdrawing from involvement in the development and manufacture of internal combustion engines. This move represents the first car manufacturer in the world to completely withdraw from the development and manufacture of internal combustion engines.
Volvo previously planned that by 2025, 50 percent of its global sales would consist of purely electric models and 50 percent would be hybrids; by 2030, the brand would shift to full production of purely electric vehicles.
However, there is a problem at this stage: it’s expensive. Whether it is the impact of the epidemic or the chip shortage, the major car companies have some idea of price increases or even have announced price increases, coupled with the current high cost of lithium batteries, soaring gasoline transaction prices boosted demand for electric vehicles, which more or less lead to new energy vehicles are difficult to reduce prices in the short term.
Shanghai Steel Association released data show: part of the lithium materials offer rose again, battery-grade lithium carbonate raised 2,500 yuan/ton, an average price of 590,000 yuan/ton, industrial-grade lithium carbonate rose 2,500 yuan/ton, the average price of 577,500 yuan/ton, continued to set a new record high.
In this regard, Volvo CEO Jim Rowan (Jim Rowan) believes that electric cars will reach the same pricing as the same level of gasoline cars as early as 2025 when there will be enough technology to reduce battery costs. He believes new technologies will drive range improvements, with smaller batteries for longer ranges and lower costs.
Rowan also said that car companies should not rely on government subsidies to find success, they must find a way to produce electric cars that “people want and can afford”.
Volvo has just officially unveiled its EX90 three-row, seven-seat midsize electric SUV, which will serve as a replacement for the current XC90.
