Volvo promises 'flawless launch' of first battery line despite recent cell bottlenecks

GHENT, Belgium -- Volvo has taken another big step on its journey toward having full-electric cars make up half of its global sales by 2025 with its first battery assembly line here.

Ghent plant boss Stefan Fesser promised a "flawless launch" of battery system production at a new 5,000-square-meter facility, which is on the same campus as Volvo's vehicle assembly plant.

His promise comes despite recent reports that Volvo's cell supplier, LG Chem, has had trouble meeting demand from other automakers, resulting in production stoppages at two rivals.

Last month Audi had to stop making the e-tron full-electric SUV at its factory in Brussels. Media reports blamed the problem on a shortage of cells supplied from LG Chem's factory in Wroclaw, Poland. Jaguar Land Rover was also forced to reduce production of the I-Pace electric SUV, which is made in Graz, Austria, due to battery supply issues from LG Chem's Poland plant.

Multiple Volvo executives at the battery line's inauguration on Thursday expressed confidence in the Korean supplier's ability to provide it with enough cells to keep up with demand for the automaker first full-electric car, the XC40 Recharge P8, which goes into production in late September.

"We don’t have any issues," Volvo's Jonas Engstrom told Automotive News Europe. "Everything is running according to plan."

Volvo's new model launch manager, Peter Durie, also said that there has been no indication that LG Chem would have any issues supplying the factory, which starts test production on Monday. The aim is to have the line ready for serial output in time for the XC40 Recharge's start of production.