Volvo invests in Israeli electric car battery maker StoreDot

An Israeli producer of electric car batteries announced today new investment from the Swedish car giant Volvo. 

StoreDot said that Volvo’s venture capital arm made a “strategic investment” for an unspecified amount of money. The partnership will allow StoreDot and Volvo to collaborate on battery technology, StoreDot said in a press release. 

“This gives us the financial firepower to bring our revolutionary batteries to market quicker,” said StoreDot chief financial officer Meir Halberstam. 

Why it matters: StoreDot produces an electric car battery that can purportedly last for 100 miles after charging for only five minutes. The battery is aptly named “100in5.” 

StoreDot’s manufacturing partner, Eve Energy, is based in China. Economic cooperation between Israel and the People’s Republic has expanded greatly in recent years, much to the chagrin of the United States. Volvo is also now owned by a Chinese company. 

The company has gained investment from other sources as well. In January, StoreDot announced it raised around $80 million in a fundraising round. 

Electric cars are appealing because of their potentially positive effects on the environment, as they do not run on carbon-based energy sources such as petroleum. However, the production of electric cars requires carbon, and the extraction of earth metals needed for the batteries carries its own environmental impact. 

Demand for electric vehicles is growing in Israel. The country imported 1,500 vehicles made by Tesla last year. 

What’s next: StoreDot said they are on track to mass produce the 100in5 battery as early as 2024, according to the press release.