Volvo Cars is making significant technology investments and focusing on research and development in order to become a fully electric car manufacturer by 2030. One key area of focus is the improvement of e-motors, inverters, and overall electric drivetrain optimization.

To achieve this goal and create pure electric Volvo cars that meet customer demands for longer range, faster charging, and a superior driving experience, Volvo aims to gain control over its electrification technology stack through a process called vertical integration.

The recent investment made by Volvo Cars Tech Fund, the company’s corporate venture capital arm, reflects this ambition. Leadrive, a Shanghai-based start-up founded in 2017, is a promising player in the field of power electronics and control units for fully electric cars.

Leadrive specializes in designing and building power modules that utilize silicon carbide (SiC) technology. SiC is a semiconductor material that enables highly efficient and flexible electric propulsion systems.

Alexander Petrofski, CEO of Volvo Cars Tech Fund, believes Leadrive’s technology shows great potential for developing more efficient electric drivetrains. He expressed excitement about investing in the company and supporting its growth.

Both Volvo Cars and Leadrive have collaborated closely on the development of next-generation SiC technologies, leading to a strategic partnership. Jie Shen, founder and CEO of Leadrive, considers this investment to be a significant milestone in their global strategy and a testament to their collaboration in advanced electrification technology.

Firmly focused on vertical integration

Volvo Cars’ investment in Leadrive aligns with their electrification roadmap, which emphasizes vertical integration while also seeking collaborations with relevant partners. The company has made critical technology investments, bringing the development and manufacturing of e-motors and inverters in-house. They are also developing their own battery management software and investing in the production of battery packs through their joint venture with Northvolt, Novo Energy, to optimize battery chemistry and integration in their cars.

These investments enable Volvo Cars to have full control over the entire electrical propulsion system in their fully electric vehicles. Partnering with companies like Leadrive expands their knowledge base and allows them to explore new and exciting technologies.

Accelerating the transformation

Volvo Cars Tech Fund was established in 2018 to invest in companies and technology areas that drive transformation in the automotive industry, including artificial intelligence, electrification, autonomous driving, sustainability, and digital commerce. The fund strategically invests to help start-ups thrive and contribute to the rapid transformation of the global mobility industry.

This latest investment by the Tech Fund is part of Leadrive’s new funding round, securing the fund a minority stake in the company. Financial details of the investment have not been disclosed.