On our road towards becoming a fully electric car maker by 2030, an important focus area for our technology investments and R&D spending is e-motors, inverters and overall electric drivetrain optimisation.
Only by gaining control over our electrification technology stack – a process called 'vertical integration' – can we create pure electric Volvo cars that deliver on everything our customers want: longer range, faster charging and a great Volvo driving experience.
The latest investment by the Volvo Cars Tech Fund, our corporate venture capital arm, reflects those ambitions. Leadrive, a Shanghai-based company founded in 2017, is an exciting new player in power electronics and control units for fully electric cars.
Leadrive is specialised in designing and building power modules that use silicon carbide (SiC) technology. Silicon carbide is a semiconductor base material that promises to unlock highly efficient and flexible electric propulsion systems.
“Leadrive’s technology demonstrates a lot of potential for the development of more efficient electric drivetrains,” said Alexander Petrofski, CEO of the Volvo Cars Tech Fund. “That potential closely aligns with our own focus on electrification, so we’re excited to invest in the company and help it to continue growing its business.”
“Volvo Cars and Leadrive have been working very closely on the development of new-generation SiC technologies, which has built a firm stairway towards the strategic collaboration,” said Jie Shen, founder and CEO of Leadrive. “This is a great milestone in Leadrive's global strategy and demonstrates the huge potential of our cooperation in advanced electrification technology.”
Firmly focused on vertical integration
Our investment in Leadrive fits with our electrification roadmap. Firmly focused on vertical integration, our roadmap also entails collaborating with relevant partners where it makes sense. To make that roadmap a reality, we’ve doubled down on critical technology investments in recent years and made key decisions on what we build versus what we buy.
For example, we’ve brought the development and manufacturing of e-motors and inverters in-house, while we’re also developing our own battery management software. On top of that we’re investing in the development and production of our own battery packs through Novo Energy, our joint venture together with Northvolt, optimising battery chemistry and integration in our cars.
Together, these investments in batteries, e-motors, inverters and battery management software allow us to control the entire electrical propulsion system in our fully electric cars. By working with firms such as Leadrive, we can broaden our knowledge base and explore new exciting technologies.
Accelerating the transformation
We started our Volvo Cars Tech Fund in 2018 to invest in companies and technology areas that transform the automotive industry, such as artificial intelligence, electrification, autonomous driving, sustainability and digital commerce. The Tech Fund makes strategic investments to help start-ups to thrive and jointly accelerate the transformation of the global mobility industry.
This latest investment made by our Tech Fund is part of a new funding round by Leadrive, giving the Tech Fund a small minority stake in the company. Further financial details are not disclosed.
Volvo Cars in 2022
For the full year 2022, Volvo Car Group recorded an operating profit of SEK 22.3 billion. Revenue in 2022 amounted to SEK 330.1 billion, while global sales reached 615,121 cars.
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected car brands in the world with sales to customers in more than 100 countries. Volvo Cars is listed on the Nasdaq Stockholm exchange, where it is traded under the ticker “VOLCAR B”.
Volvo Cars aims to provide customers with the Freedom to Move in a personal, sustainable and safe way. This is reflected in its ambition to become a fully electric car maker by 2030 and in its commitment to an ongoing reduction of its carbon footprint, with the ambition to be a climate-neutral company by 2040.
As of December 2022, Volvo Cars employed approximately 43,200 full-time employees. Volvo Cars' head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars' production plants are located in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The company also has R&D and design centres in Gothenburg, Camarillo (US) and Shanghai (China).
For further information, please contact:
Volvo Cars Media Relations
+46 31-59 65 25
Volvo Cars Investor Relations
+46 31-793 94 00