Volvo’s new EX90 uses CATL batteries in the US, but that may change soon

Although the EX90 is built in South Carolina, Volvo sources its batteries from China’s CATL. After raising EX90 prices due to extra tariffs, Volvo is now looking for US suppliers to cut costs.

Volvo is looking for US-made batteries for the EX90

The EX90 is Volvo’s first luxury electric seven-seater SUV (check out our review). After the first models rolled off the assembly line at Volvo’s manufacturing plant just outside Charleston, South Carolina, last summer, the first customers began receiving their vehicles by the end of 2024.

Despite initially announcing that the EX90 would start at $77,990, Volvo hiked prices by an extra $3,300 before the car even reached dealerships.

Volvo spokesperson Sophia Durr said the higher prices were due to rising material costs. However, the announcement came after the US imposed additional tariffs on imports from China, including a 25% hike on EV batteries.

Despite being made in the US, the Volvo EX90 is powered by CATL batteries. According to CEO Jim Rowan, that could soon change.

On the company’s media call last week (via Automotive News), Rowan said the extra tariff “takes a bite” out of EX90 margins.

“We’re looking to try and find if we can get a local battery manufacturer in the U.S. to help us minimize those costs,” Volvo’s CEO added.

CATL is by far the world’s largest EV battery maker, with customers including Tesla, BMW, Volkswagen, and Mercedes-Benz.

According to SNE Research, CATL held a commanding 37.9% of the global battery market in 2024. China’s BYD was second with a 17.2% share.

Volvo has a few options for sourcing EX90 batteries in the US. Several global battery leaders, including South Korea’s SK On, which already has supply contracts with VW, Ford, and Hyundai, could be in the running. SK On’s Commerce, GA plant can supply roughly 300,000 EVs per year.

Last month, Volvo announced that 2025 Volvo EX90 prices start at $79,995 and run upward to nearly $90,000 for the premium Performance Ultra 6-seater model.

The Volvo EX90 is 68.7″ tall, 77.3″ wide, and 198.3″ long, or about the size of the Rivian R1S (77″ H x 82″ W, 201″ L), BMW iX (67″ H x 77″ W x 195″ L), and the Porsche Macan EV (64″ H x 76″ W x 188″ L).

With an 111 kWh battery pack, the Volvo EX90 has up to 310 miles of driving range and fast charging (10% to 80%) in about 30 minutes.