By Jiahui Huang

Volvo Car Group will collaborate with Contemporary Amperex Technology on battery recycling, following a long-term deal signed in 2019.

The Swedish auto maker on Thursday said it signed a memorandum of strategic cooperation with CATL. Volvo Cars will recycle used batteries from its new-energy vehicles. CATL will use the materials extracted from the batteries to produce new ones, which will be used in new Volvo cars.

The deal comes as Volvo Cars, majority owned by China's Zhejiang Geely Holding Group, is moving to become a fully electric-vehicle company.

The company expects EVs to account for half its sales volume by the middle of the decade, with its lineup expected to be fully electric by 2030. In March, it sold a record number of cars in a single month, driven by strong sales of its fully electric models.

CATL in 2019 signed a long-term, multibillion-dollar deal with Volvo Cars to supply lithium ion batteries for the Swedish car company's Volvo and Polestar electric vehicles.

CATL, which provides batteries to Tesla, Ford Motor, Li Auto, NIO and others, remained China's top EV-battery maker in March, with a market share of 42%, according market data research organization China Automotive Battery Innovation Alliance.

Write to Jiahui Huang at

(END) Dow Jones Newswires

04-18-24 0724ET