The Volvo Cars Tech Fund was established in 2018 to invest in companies and technologies that are transforming the automotive industry. These technologies include artificial intelligence, electrification, autonomous driving, sustainability, and e-commerce. The Tech Fund makes strategic investments to help startups grow and accelerate the industry’s transformation.
The recent investment by the Tech Fund is part of a new capital-raising round by Leadrive, in which the Tech Fund acquired a minority stake in the company. This investment is crucial as Volvo aims to transition into a manufacturer of exclusively electric vehicles by 2030.
The technology and expenses related to Research and Development (R&D) involve electric motors, inverters, and the overall optimization of the electric propulsion system. Only by controlling the entire technological chain of electrification can Volvo create truly all-electric vehicles that offer improved range, faster charging, and maintain the brand’s traditional driving experience.
Leadrive, founded in Shanghai in 2017, specializes in designing and manufacturing power units using silicon carbide (SiC) technology. Silicon carbide is a promising material for developing efficient and flexible electric propulsion systems.
Volvo’s investment in Leadrive aligns with the company’s roadmap towards electrification. Committed to vertical integration, Volvo collaborates with partners in relevant fields to achieve its goals. In recent years, Volvo has doubled its investments in critical technology, bringing the development and manufacturing of electric motors and inverters in-house. The company has also invested in advanced battery management software. Additionally, Volvo aims to optimize battery chemistry and accelerate the integration of its proprietary batteries into its vehicles through Novo Energy, a joint venture with Northvolt.