As the race for electric vehicle batteries heats up, Volkswagen, as well as Goldman Sachs-backed Northvolt, scoops up Silicon Valley’s Cuberg

In recent times, the Swedish battery manufacturer, Northvolt, created by an ex-Tesla employee, snapped up Cuberg, intending to access the Silicon Valley startup’s technology. This tech key specialization is boosting the range of EV car batteries and energy density. Northvolt has been running for the last five years, and the man behind the tech company is Petter Carlsson. Also, 40% of the company is under the Volkswagen Group VOW. Recently, the company announced that Cuberg’s batteries would be deployed into the EV business in the next five years.

Peter stated that this acquisition would offer the resources and finances to improve the electric vehicles’ performance and safety. Also, this innovation will drive down the battery cost for the next-generation cells. In his statement, Peter spoke about this deal claiming that this chance is the key to helping the globe electrify all the cars. The terms of this deal are not open to the public, but soon, we will witness remarkable company changes.

This deal comes amid the global race to deliver robust and outstanding batteries to help electric vehicle development. For years, Tesla has been dominating the EVs business, and this detail is no surprise since it was the first carmaker to go into the business. However, things are different since traditional carmakers are moving into the electrification business and hoping to match the EV pioneer Tesla.

European carmakers have one thing in common; the firms are scrambling to invest in high-class battery technology to back up the electric vehicle manufacturer and stand a chance to beat Tesla and Chinese carmakers such as NIO and XPeng. USB’s recent report predicts that electric vehicles will fully penetrate the market by 2040. And this information explains why every car manufacturer around the globe is working towards the electrification feature.

Swiss Bank analysts also have another area of concern, the batteries manufacturers. It is no secret that electric vehicles need high-quality battery technology to serve efficiently. And reliable predictions claim that the battery demand will rise globally by 2025. This detail means that battery manufacturers such as Contemporary Amperex Technology, LG Chem, and CATL will benefit from such an event. However, Northvolt is located in Europe, the world’s largest electric vehicles market behind China; hence it poses threats to LG Chem and CATL.

Northvolt is working towards an ambitious goal to create the world’s greenest and powerful battery, whose construction is currently running in Sweden and Germany. Also, it recently partnered with Goldman Sachs for more resources and finances. The Cuberg’s breakthrough battery technology is excellent, and its range is beyond the current batteries available.

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