“Volvo announced a ten-year, multi-billion dollar deal with two battery cell manufacturers, CATL and LG Chem. The deal is to procure the Lithium-ion batteries for its upcoming EVs under its own brand and sub-brand Polestar. Volvo has said it has pushed the target of EVs constituting 50% of sales to 2025 and expects its margins on EVs to match those of vehicles with combustion engines by that time. Long-term battery supply deals will add value to automakers as they help to clear supply bottlenecks at a time of soaring demand and promise cheaper batteries over time. Moreover, by having at least two or more vendors, takes care of automakers’ aim to have flexibility in supply and encourage competition among vendors to manage pricing better.” – Liz Lee